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On January 1, Charlotte pays $5,000 for a 10% capital, profits, and loss interest in a limited partnership, which has recourse liabilities of $20,000. George
On January 1, Charlotte pays $5,000 for a 10% capital, profits, and loss interest in a limited partnership, which has recourse liabilities of $20,000. George is the general partner. In the same year, the partnership recognizes income of $10,000 and the recourse liabilities decrease by $5,000. Charlotte's basis at year-end is
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