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will thumbs up this is all the info given An examination of the XYZ Partnership's tax books provides the following information for the current year:
will thumbs upthis is all the info given
An examination of the XYZ Partnership's tax books provides the following information for the current year: Operating (ordinary) income before guaranteed $900,000 payments Short term capital loss 6,000 Long term capital gain 12,000 Guaranteed payment to Chris for services 30,000 Cash distributions to Chris 15,000 Nondeductible entertainment expenses 2,000 Charitable contributions made by partnership 4,000 Increase in partnership liabilities from 1/1-12/31 30,000 Chris is a 20% general partner in partnership capital, profits, and losses. Assume the adjusted basis of her partnership interest is $75,000 at the beginning of the year, and she shares in 20% of the partnership's liabilities for basis purposes. a. How much of the above amounts will XYZ Partnership allocate to Chris for the current year? b. What is Chris' adjusted basis for the partnership interest at the end of the yearStep by Step Solution
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