Evaluate andreas basis in the partnership interest

Assignment Help Financial Accounting

Reference no: EM132924

Question :

Michael and Andrea are equal partners in the accrual basis AM partnership. At the starting of the existing year, Andrea's capital account has a balance of $200,000, and the partnership has recourse debts of $100,000 payable to not linked parties. Suppose that all partnership has recourse debt is shared equally between the partners. The subsequent information about the AM's operation for the existing year is obtained from the partnership's records.

Taxable income 320,000

Tax-exempt interest income 6,000

1231 gain 9,000

Short-term capital loss 2,000

Political contribution 1,000

Charitable contribution 2,000

Cash distribution to Andrea 50,000

Suppose the year-end partnership debt payable to unrelated parties is $140,000. If all transactions are reflected in her starting capital and basis in the same manner, Evaluate Andrea's basis in the partnership interest:

a. At the starting of the year?

b. At the end of the year?

Reference no: EM132924

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