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Question - Leenie Beenie Partnership has gross operating revenue of $400,000, cost of sales of $150,000, salaries to employees of $40,000, a $25,000 Section 179 expense deduction, $10,000 of other depreciation, interest income of $3,000, a $4,000 capital loss, and a $600 charitable contribution deduction.
a. What are the partnership's bottom line net income and its separately stated items?
b. Kathleen is a 20% partner in Leenie Beenie Partnership and receives no distributions from the partnership during the year. She has a $55,000 basis in her partnership interest at the end of the year after all income/loss items have been passed through to her. What was her beginning-of-the-year basis in her partnership interest?
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