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W is a partner in the equal WXYZ partnership. At the beginning of the year, his basis in his partnership interest is $50,000. On Jan.
W is a partner in the equal WXYZ partnership. At the beginning of the year, his basis in his partnership interest is $50,000. On Jan. 15, W takes a draw against earnings of $45,000. On June 1, the partnership pays off $50,000 of debt. On Sept. 1, W gets a distribution of cash of $35,000 that is a draw against earnings. The partnerships income from the year is $250,000. What is the effect of each of these items on Ws basis
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