Rachel, Susan, and Trisha formed the RST partnership on January 1, 2013, and properly adopted a calendar tax year. The partnership elected to use the cash receipts and disbursements method of accounting. Among RST's items of income, expense, loss, and credit for its 2017 tax year were a guaranteed payment to Susan for services rendered, expenses attributable to investment income, and a long-term capital loss. RST had no other capital gains or losses during the tax year. Susan, a domestic partner, has a $7,000 basis in the RST partnership immediately before receiving a current distribution. The distribution consists of S6,000 cash, a computer with a FMV of $2,500 and a S5,000 basis to the partnership, and a desk with a FMV of $1,500 and a $2,500 basis to the partnership In addition, RST has the following items in its current-year financial statements RST received $15,000 in prepaid rent from a tenant leasing one of RST's offices RST also earned $16,000 of tax-exempt interest during the year. RST incurred S6,000 in interest expense on a loan used to purchase the tax-exempt bonds One of RST's key partners died during the year, and RST received $30,000 in life insurance proceeds, which was included in book income RST spent S8,000 on meals and entertainment to attract new clients. Business was discussed at each meeting RST purchased a new machine during the year to assist in operations. RST elected to immediately expense S39,000 of the machine under code section 179. RST uses the same depreciation method for book and tax purposes for the machine During the year, Trisha contributed an additional $10,000 cash to the partnership. No property was contributed Trisha also received $20,000 in a guaranteed payment during the year Net income recorded on the books for financial accounting purposes for the year was $100,000. The partners' combined capital accounts at the beginning of the year totaled S50,000 1. 2. 3. 4. 5. 6. 7. 8. Based on the facts above, enter Susan's basis in the distributed property in the shaded cells below. Indicate negative numbers by using a leading minus (-) sign Calculation Items Computer Desk Partnership basis in assets Decline in FMV Relative adjusted basis Remaining decrease to be allocate Susan's basis in distributed property Rachel, Susan, and Trisha formed the RST partnership on January 1, 2013, and properly adopted a calendar tax year. The partnership elected to use the cash receipts and disbursements method of accounting. Among RST's items of income, expense, loss, and credit for its 2017 tax year were a guaranteed payment to Susan for services rendered, expenses attributable to investment income, and a long-term capital loss. RST had no other capital gains or losses during the tax year. Susan, a domestic partner, has a $7,000 basis in the RST partnership immediately before receiving a current distribution. The distribution consists of S6,000 cash, a computer with a FMV of $2,500 and a S5,000 basis to the partnership, and a desk with a FMV of $1,500 and a $2,500 basis to the partnership In addition, RST has the following items in its current-year financial statements RST received $15,000 in prepaid rent from a tenant leasing one of RST's offices RST also earned $16,000 of tax-exempt interest during the year. RST incurred S6,000 in interest expense on a loan used to purchase the tax-exempt bonds One of RST's key partners died during the year, and RST received $30,000 in life insurance proceeds, which was included in book income RST spent S8,000 on meals and entertainment to attract new clients. Business was discussed at each meeting RST purchased a new machine during the year to assist in operations. RST elected to immediately expense S39,000 of the machine under code section 179. RST uses the same depreciation method for book and tax purposes for the machine During the year, Trisha contributed an additional $10,000 cash to the partnership. No property was contributed Trisha also received $20,000 in a guaranteed payment during the year Net income recorded on the books for financial accounting purposes for the year was $100,000. The partners' combined capital accounts at the beginning of the year totaled S50,000 1. 2. 3. 4. 5. 6. 7. 8. Based on the facts above, enter Susan's basis in the distributed property in the shaded cells below. Indicate negative numbers by using a leading minus (-) sign Calculation Items Computer Desk Partnership basis in assets Decline in FMV Relative adjusted basis Remaining decrease to be allocate Susan's basis in distributed property