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PATRICK HAS A 30% INTEREST IN A PARTNERSHIP THAT HAS ORDINARY INCOME OF$ 60,000.00 AND TAX EXEMPT INCOME OF$ 10,000.00 DURING THE YEAR. IF HIS
PATRICK HAS A 30% INTEREST IN A PARTNERSHIP THAT HAS ORDINARY INCOME OF$ 60,000.00 AND TAX EXEMPT INCOME OF$ 10,000.00 DURING THE YEAR. IF HIS BASIS IN THE PARTNERSHIP INTEREST AT THE BEGINNING OF THE YEAR WAS$ 200,000.00, WHAT WOULD BE PATRICK'S BASIS OF HIS PARTNERSHIP INTERESTAT THE END OF THE YEAR?
PART II
ASSUME THAT NEXT YEAR THE PARTNERSHIP REPORTED A$ 70,000.00 LOSS AND A$ 20,000.00 NON DEDUCTIBLE EXPENSE, WHAT WOULD BE PATRICK'S BASIS OF HIS PARTNERSHIP INTEREST AT THE END OF NEXT YEAR?
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