Determine the Year-End Adjusted Basis of Roberto's 1/2 Interest in the Halifax

question 23

Multiple Choice

Determine the year-end adjusted basis of Roberto's 1/2 interest in the Halifax Partnership. At the beginning of the year, Roberto's adjusted basis is $80,000. The net operating profit of the partnership is $90,000. Also, Halifax distributes $15,000 of cash to Roberto.

• A)$65,000
• B)$110,000
• C)$140,000
• D)$155,000
• E)$185,000

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Definitions:

Windpipe

Another term for the trachea, the large airway that leads from the throat (pharynx) to the lungs, allowing for air passage.

Nasal Cavity

A large air-filled space above and behind the nose in the middle of the face, part of the respiratory system, which filters, warms, and moistens air breathed in through the nose.

Larynx

An organ located in the neck of mammals that is involved in breathing, sound production, and protecting the trachea against food aspiration.

Voice Box

Also known as the larynx, it is the organ in the throat involved in breathing, sound production, and protecting the trachea against food aspiration.