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puteri [66]
3 years ago
9

Prairie Partnership has four equal partners, Dodd, Crank, Pick, and Mack. Each of the partners had a tax basis of $320,000 as of

January 1, 20X5. Prairie’s 20X5 ordinary business income was $152,000 before deducting any guaranteed payments to the partners. During 20X5, Prairie paid Mack guaranteed payments of $4,000 for deductible services rendered. During 20X5, each of the four partners took a distribution of $50,000. What is Mack’s tax basis in Prairie on December 31, 20X5?

Business
1 answer:
forsale [732]3 years ago
3 0

Answer

Option D.

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

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Answer:

D is not correct statement.

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