Partner Tami a 20% Partner)had the Following Items Reported to Her

question 20

Multiple Choice

Partner Tami a 20% partner) had the following items reported to her on a partnership Schedule K-1: Tami had a basis in her partnership interest of $14,000 at the beginning of the year.Additionally,the partnership has recourse liabilities of $100,000 outstanding at the end of the year.What is Tami's basis in her partnership interest at the end of the year?

• A)$7,000.
• B)$11,200.
• C)$31,200.
• D)$23,200.

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Definitions:

Corporate Ladder

A metaphor for the structured hierarchy within a corporation, indicating possible paths for career advancement.

Technical Default

A violation of a technical term or condition in a loan agreement, such as failing to maintain insurance, rather than failing to make payments.

Loan Covenants

Conditions set by lenders that borrowers must agree to and maintain to remain in compliance with the terms of the loan agreement.

Interest Payments

The payments made by a borrower to a lender for the use of borrowed money, typically expressed as an annual percentage of the principal.