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Eve and Torn own 40% and 60%, respectively, of the ET Partnership, whidl manufactures clocks. The partnership is a limited partnership, and Eve is the
Eve and Torn own 40% and 60%, respectively, of the ET Partnership, whidl manufactures clocks. The partnership is a limited partnership, and Eve is the only general partner. She works hilltime in the business. Torn essentiallyT is an investor in the firm and works fulltime at another job. Torn has no other income except his salary from his fulltime employer. During the current year, the partnership reports the following gain and loss: Ordinary loss 140,.DDU Longterm capital gain 2,l}{l Before including the current year's gain and loss, Eve and Tom had $46, and $?5,{l-I] bases for their partnership interests, respectively. The partnership has no nonrecourse liabilities. Torn has no further obligation to rnalce any additional investment in the partnership. a. What gain or loss should each partner report on his or her individual tax return
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