ABC Partnership calendar year records show the following: 2001 Net Income N/A 20
ID: 2438470 • Letter: A
Question
ABC Partnership calendar year records show the following: 2001 Net Income N/A 2002 $5,000 Recoarse debt 2001 $30,000 2002 $36,000 Nonrecourse debt 2001 $60,000 2002 $52,000. ABC Partnership owns and rents out office buildings. All of its debt is owned to unrelated parties. L has a 10% ownership interest and is allocated 10% of all profits and losses. L is a limited partner and has a $300 basis in the partnership at the beginning of 2002. How much basis does L have in the partnership at the end of 2002? A $0, B $500, C $700 and D$800
Explanation / Answer
Answer is option D $800
L's basis in the partnership at the end of 2002 = basis in the partnership at the beginning of 2002 + basis for 2012 = 300 + (5000*10%) = 300+500 = 800