Capital Account Rollforward for Computation of Partner's Outside Basis at Beginning and End of Year when Several Transactions Took Place (LO. 4, 5)

Amy and Mitchell are equal partners in the accrual basis AM Partnership. At the beginning of the current tax year, Amy's capital account has a balance of $300,000, and the partnership has recourse debts of $200,000 payable to unrelated parties. Assume that all partnership recourse debt is shared equally between the partners. The following information about AM's operations for the current year is obtained from the partnership's records:

Ordinary income	$400,000
Interest income	4,000
Long-term capital loss	6,000
Short-term capital gain	12,000
Charitable contribution	4,000
Cash distribution to Amy	20,000

Assume that year-end partnership debt payable to unrelated parties is $140,000 and that all transactions are reflected in her beginning capital and basis in the same manner.

Prepare Amy's capital account rollforward from the beginning to the end of the tax year in order to determine Amys capital account at the beginning of the year, Amys capital account at the end of the year, and how the capital account balances differ from her basis amount.

Capital account balance, beginning year			$
Taxable income	$
Interest income
Short-term capital gain
			$
Less:
Long-term capital loss	$
Charitable contribution	$
Cash distribution to Amy
Capital account balance, end of year			$

Amy's capital account differs from her basis only by the amount of her share of partnership SelectassetsliabilitiesItem 12 .