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Nataliya [291]
3 years ago
9

At the beginning of the tax year, Barnaby's basis in the BBB Partnership was $50,000, including his $5,000 share of partnership

debt. At the end of the tax year, his share of debt was $8,000. His share of the partnership's income for the year was $20,000, and he received cash distributions totaling $12,000. In addition, his share of the partnership's nontaxable income was $1,000.
Required:
Determine Barnaby's basis at the end of the tax year.
Business
1 answer:
drek231 [11]3 years ago
5 0

Answer:

$62,000

Explanation:

Calculation to Determine Barnaby's basis at the end of the tax year

Using this formula

Ending tax year Barnaby's basis in the partnership=[BBB Partnership basis+( Share of debt-Share of partnership debt)+ Share of Partnership's income +Share of partnership's nontaxable income-Cash distributions]

Let plug in the formula

Ending tax year Barnaby's basis in the partnership =$50,000 + ($8,000-$5,000) + $20,000 + $1,000 - $12,000

Ending tax year Barnaby's basis in the partnership =$50,000 + $3,000 + $20,000 + $1,000 - $12,000

Ending tax year Barnaby's basis in the partnership = =$62,000

Therefore Barnaby's basis at the end of the tax year will be $62,000

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d. sells Treasury bonds. The larger the reserve requirement, the larger the decrease will be.

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Increasing the size of the reserve requirement reduces the percentage of deposits available to be loaned out. Reserves are a percentage of customers deposits that the Fed requires banks to maintain in their custody at all times. Reserves cannot be issued out as loans. The larger the reserve requirements, the lesser the proportion of funds are available for credit purposes.

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According to a different source, these are the options that come with this question:

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This is most likely not a good strategy for this woman. The fact that this woman has been hired as a freelance web designer means thta the woman is beig paid for her professional expertise. No one else can perform the job in the way that she can perform it. Therefore, she cannot assign this duty to another person.

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