Which of the Following Items Decreases a Partner's Basis in His

question 26

Multiple Choice

Which of the following items decreases a partner's basis in his or her partnership interest?

• A)A nondeductible expense that flows through from the partnership.
• B)A cash distribution from the partnership.
• C)A release from partnership liabilities.
• D)All of these.

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Definitions:

Accounts Credited

Refers to the entries made on the credit side of a ledger, indicating a reduction in assets or an increase in liabilities or equity.

Supplies On Account

The purchase of supplies on credit, where payment is deferred to a later date.

Normal Balance

The side (debit or credit) of an account that is expected to have a higher balance based on the account type.

Service Revenue

Income earned by a company through the provision of services to customers, as opposed to selling goods.