Partnership Formation, Current Distributions and Guaranteed Payments (LO 10.2, 10.4)

Wilson has a 40 percent interest in the assets and income of the CC&W Partnership, and the basis in his partnership interest is $45,000 at the beginning of 2014. During 2014, the partnership's net loss is $60,000 and Wilson's share of the loss is $24,000. Also, Wilson receives a cash distribution from the partnership of $12,000 on June 30, 2014.

a. Indicate the amount of income or loss from the partnership that should be reported by Wilson on his 2014 individual income tax return. $ SelectGainLossCorrect 2 of Item 1

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b. Calculate Wilson's basis in his partnership interest at the end of 2014. $