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Simora [160]
3 years ago
6

vProblem 10-4 Partnership Formation (LO 10.2) Elaine's original basis in the Hornbeam Partnership was $40,000. Her share of the

taxable income from the partnership since she purchased the interest has been $70,000, and Elaine has received $80,000 in cash distributions from the partnership. Elaine did not recognize any gains as a result of the distributions. In the current year, Hornbeam also allocated $1,000 of tax-exempt interest to Elaine. Calculate Elaine's current basis in her partnership interest. $fill in the blank 1
Business
1 answer:
Alex3 years ago
7 0

Answer: $31000

Explanation:

Elaine's current basis in her partnership interest will be calculated as:

= Value of original basis + (interest purchased - Cash received) + tax exempt interest

= $40000 + ($70000 - $80000) + $1000

= $40000 - $10000 + $1000

= $31000

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