Barb and Chuck Each Have a 50% Ownership in Wren

question 81

Multiple Choice

Barb and Chuck each have a 50% ownership in Wren Partnership. Each partner has a partnership interest basis of $125,000. Wren's taxable income for the current year is $90,000, and it distributes $60,000 to each partner. Barb's basis in the partnership interest at the end of the year is:

• A) $0.
• B) $65,000.
• C) $110,000.
• D) $125,000.
• E) None of the above.