What is Gray tax basis in Fabco on December

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Problem - Gray is a 50% partner in Fabco Partnership. Gray's tax basis in Fabco on January 1, year 4, was $5,000. Fabco made no distributions to the partners during year 4 and recorded the following:

Ordinary income $20,000

Tax-exempt income 8,000

Portfolio income 4,000

Required - What is Gray's tax basis in Fabco on December 31, year 4?

a. $21,000

b. $16,000

c. $12,000

d. $10,000

Reference no: EM132648236

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