Julie Simmons had a 60 % interest in capital and profits of Tri - State Partnership . You are charged to determine the basis and return effects of the provided transactions on Julie's basis in her partnership interest and her tax return . In addition , determine her basis in any property received as a distribution from the partnership . Prepare Tax Workpapers for Julie that include the supporting calculations in Excel for the partner's basis and tax return effects .

Julie Simmons had a 60 % interest in capital and profits of Tri - State Partnership . Her basis for this interest at the beginning of 2022 was \$5,700, During the year , the Tri - State distributed the following assets to Julie .

Basis Fair Market Value Cash

$ 2.000 S2,000

Machinery $ 4,900 $ 6,100

Inventory $ 1,500 $ 2,000

Office Equipment $ 3.000 $ 4,300

Julie also received a guaranteed payment from the partnership in the amount of $ 3,000 for management services that she provided . In addition , the partnership had operating income of $ 10,000 ( before considering any of these other transactions ) and LTCLs of $ 20,000 .