At the Beginning of the Year, Heather's "Tax Basis" Capital

question 29

Multiple Choice

At the beginning of the year, Heather's "tax basis" capital account balance in the HEP Partnership was $60,000.During the tax year, Heather contributed property with a basis of $10,000 and a fair market value of $30,000.Her share of the partnership's ordinary income and separately stated income and deduction items was $26,000.At the end of the year, the partnership distributed $10,000 of cash to Heather.Also, the partnership allocated $15,000 of recourse debt and $25,000 of nonrecourse debt to Heather.What is Heather's ending capital account balance determined using the "tax basis" method?

• A)$86,000.
• B)$96,000.
• C)$101,000.
• D)$126,000.
• E)$136,000.

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Definitions:

Supplier

A supplier is a business or individual that provides goods or services to another company or entity, typically as part of a supply chain.

Logistics Management

The part of supply chain management that plans, implements, and controls the efficient, effective forward, and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption.

Supply-Chain Management

The oversight and management of a product's lifecycle from production to distribution, ensuring efficiency and quality.

Raw Materials

The basic, unprocessed resources that are used in the production of goods and services, ranging from metals and oil to grains and lumber.