Marianne Is a 50% Partner in the BAM Partnership

question 27

Multiple Choice

Marianne is a 50% partner in the BAM Partnership.At the beginning of the tax year,Marianne's basis in the partnership interest was $200,000,including her share of partnership liabilities.During the current year,BAM reported an ordinary loss of $100,000.In addition,BAM distributed $10,000 to Marianne and paid partner Barry a $20,000 consulting fee (neither of these amounts was deducted in determining the $100,000 loss from operations) .At the end of the year,Marianne's share of partnership liabilities decreased by $30,000.Assuming loss limitation rules do not apply,Marianne's basis in the partnership interest at the end of the year is:

• A)$90,000.
• B)$95,000.
• C)$100,000.
• D)$135,000.
• E)None of the above.

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