Powell owns a 20% interest in Cooke Partnership. At the beginning of 2015, Powell's basis is $22,000.

Question:

Powell owns a 20% interest in Cooke Partnership. At the beginning of 2015, Powell's basis is $22,000. Cooke reports a $90,000 operating loss in 2015, and Powell withdraws $10,000 from the partnership. Cooke's 2016 operating income is $70,000, and Powell withdraws $10,000 from the partnership.