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In a limited partnership, when cash is distributed from an investor's partnership basis, how is the new basis of capital accountcalculated? the cash distribution is

In a limited partnership, when cash is distributed from an investor's partnership basis, how is the new basis of capital accountcalculated?

  1. the cash distribution is added to the investor's capital gain
  2. the cash distribution is subtracted from the investor's capital gain
  3. the cash distribution is added to the investors partnership basis
  4. the cash distribution is subtracted from the investors partnership basis

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