Question
A and B are partners who share the gains and losses of the Q&W Partnership 60% and 40%, respectively. The tax basis of each partner's
A and B are partners who share the gains and losses of the Q&W Partnership 60% and 40%, respectively. The tax basis of each partner's interest in the partnership as of Dec. 31 of last year was as follows: A, $14000; B, $12000. During the current year, the partnership had an ordinary income of $20000 and a long term capital loss of $3000 from the sale of securities. During the year, the partnership distributed $10000 of cash, proportionately to the two partners in accordance with their partnership interests.
1. what A's tax basis in his partnership interest on Dec. 31 of the current year
2. what B's tax basis in his partnership interest on Dec. 31 of the current year
3. the amount of taxable income for items related to the partnership that A will report on his current year tax return is
4.the amount of taxable income for items related to the partnership that B will report on his current year tax return is
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