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Locke Is a 50% Partner in the LS Partnership

question 40

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Locke is a 50% partner in the LS Partnership. Locke has a basis in his partnership interest of $84,000 at the end of the current year, prior to any distribution. On December 31, Locke receives an operating distribution of $30,000 cash. LS has no debt or hot assets. What is the amount and character of Locke's recognized gain or loss? What is Locke's ending basis in his partnership interest?


Definitions:

Dysfunctionality

The state of not functioning normally or adequately, especially in the context of social behaviors and relationships.

Virginal

Pertaining to, characteristic of, or in the state of being a virgin; pure or untouched.

Sexually Experienced

A descriptor for individuals who have engaged in sexual activities.

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An approach or action characterized by physical power or intensity, often used in the context of asserting dominance or control.

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