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42. On January 1, 2010, Martha Carnes, fresh out of college, contributed $10,000 for a 30 percent interest in an accounting partnership. The senior partner

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42. On January 1, 2010, Martha Carnes, fresh out of college, contributed $10,000 for a 30 percent interest in an accounting partnership. The senior partner was not attentive to the work, and the first year they were sued for malpractice and a judgment of $100,000 was entered against the firm. The rm borrowed $50,000 in 2010 to assist in its payment. The debt was repaid in 2012. The following shows the results of the partnership operations: Year Income/(Loss) 2010 ($100,000) 2011 10,000 2012 50,000 2013 100,000 Compute Martha's reportable income (loss) for each year and the basis of her partnership interest at the end of each year

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