Answer:
Amy's basis at beginning = $1,215,000
Amy's ending basis = $1,599,625
Explanation:
As per the data given in the question,
Amy's capital basis at beginning :
Beginning capital balance = $900,000
Amy's share in amount debt = $315,000
Amy's basis at beginning = $900,000+$315,000 = $1,215,000
Amy's ending basis :
Beginning capital balance = $900,000
Taxable income = $1,080,000 × 50% = $540,000
Interest income = $10,800 × 50% = $5,400
Net short term capital gain = ($27000 - $9000) × 50% = $9,000
Total = $1,454,400
Charitable contribution = $10,850 × 50% = $5,425
Cash distribution to Amy = $54,000
Total = $1,454,400 - $5,425 - $54,000 = $1,394,875
Amy's share of debt = $409,500 × 50% = $204,750
Amy's ending basis = $1,394,875 + $204,750 = $1,599,625
