19.

Jayanthi and Krish each own a 50 percent general partner interest in the JK Partnership. The following information is available regarding the partnerships 2015 activities:

Sales revenue	$500,000
Selling expenses	200,000
Depreciation expense	30,000
Long-term capital gain	9,000
Nondeductible expenses	2,000
Partnership debts, beginning of the year	100,000
Partnership debts, end of the year	120,000
Partnership distributions
Jayanthi	50,000
Krish	50,000

a.	Calculate the partnerships ordinary (nonseparately stated) income and indicate which items must be separately stated.
b.	Calculate Jayanthis allocable share of partnership items.
c.	If Jayanthi has no other sources of taxable income, what is her total gross income for 2015?
d.	At the beginning of the year, Jayanthis adjusted tax basis in her partnership interest was $25,000. Calculate her ending adjusted tax basis in her partnership interest.