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In: Accounting

At the begining of the year, Ollie's outside in the Bow Out partnership was 35,000. During...

At the begining of the year, Ollie's outside in the Bow Out partnership was 35,000. During the tax year, he contributed property (FMV: $20,000; Basis: 6,000) subject to a recourse debt of $12,000. His 1/3 share of the partnership's ordinary income and separately stated income and deduction items was $30,000. At the end of the year, the partnership distributed $15,000 of cash to him and borrowed $36,000 of nonrecourse debt. What is Ollie's ending outside Basis?
A) 42,000
B) 56,000
C) 62,000
D) 64,000
E) 76,000

Solutions

Expert Solution

E) $                                   76,000.00
CALCULATIONS
At the begining of the year $                                   35,000.00
Partnership distributed $                                   15,000.00
Contributed property FMV $                                 (20,000.00)
Borrowed nonrecourse debt $                                   36,000.00
Stated income and deduction 1/3 of $30000 $                                   10,000.00
Ending outside Basis $                                   76,000.00

ekkarill92 answered 1 year ago
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