The adjusted cost base of C’s limited partnership interest was $70,000 on January 1 of the current year. The partnership allocated $40,000 of profit to C in the current year. The allocated profit consisted of $36,000 business income and $4,000 capital gains. In the previous year, the partnership loaned $10,000 to C. This loan remains outstanding at the end of the current year. Determine C’s at-risk amount at the end of the current year.
The adjusted cost base of C’s limited partnership interest was $70,000 on January 1 of the current year. The partnership allocated $40,000 of profit to C in the current year. The allocated profit consisted of $36,000 business income and $4,000 capital gains. In the previous year, the partnership loaned $10,000 to C. This loan remains outstanding at the end of the current year. Determine C’s at-risk amount at the end of the current year.
Chapter21: Partnerships
Section: Chapter Questions
Problem 2BCRQ
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The adjusted cost base of C’s limited
The partnership allocated $40,000 of profit to C in the current year.
The allocated profit consisted of $36,000 business income and $4,000
In the previous year, the partnership loaned $10,000 to C.
This loan remains outstanding at the end of the current year. Determine C’s at-risk amount at the end of the current year.
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT