Reference no: EM132959272

Question - Edward Engels owns a 70 percent interest in the capital and profits of the partnership of Edward and Moore. During 2011, Edward purchased a piece of surplus machinery from the partnership for $5,000. On the date of the sale the machinery had an adjusted basis to the partnership of $8,000. For the year ended December 31, 2011, the partnership's net income was $50,000 after recording the loss on the sale of the machinery. Assuming that there were no other partnership items to be specially reported, what was Edward's distributive share of the partnership's taxable income for 2011?