What is jerry adjusted basis in the partnership interest

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Problem 1: Jerry, a partner with 30% capital and profit interest, received his Schedule K-1 from Plush Pillows, LP. At the beginning of the year, Jerry's tax basis in his partnership interest was $57,000. His current year Schedule K-1 reported an ordinary loss of $22,000, long-term capital gain of $3,700, qualified dividends of $2,700, $1,200 of non-deductible expenses, a $17,000 cash contribution, and a reduction of $4,700 in his share of partnership debt. What is Jerry's adjusted basis in his partnership interest at the end of the year?

Option 1: $57,200.
Option 2: $41,400.
Option 3: $52,500.
Option 4: $35,000.

Reference no: EM132990515

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