Meredith has a 40 percent interest in the assets and income of the Gantt Partnership, and the basis in her partnership interest is $60,000 at the beginning of 2020. During 2020, the partnership’s net loss is $45,000 and Meredith’s share of the loss is $18,000. Also, Meredith receives a cash distribution from the partnership of $8,000 on June 30, 2020.
a. Indicate the amount of income or loss from the partnership that should be reported by Meredith on her 2020 individual income tax return. $______________
b. Calculate Meredith’s basis in her partnership interest at the end of 2020. $_____________