Refer to the facts in the preceding problem Mr T is a 10 percent general partner in KLMN During the year, he received a $1,000 cash distribution from KLMN a Compute Mr Ts share of partnership ordinary income and separately stated items b If Mr Ts adjusted basis in his KLMN interest was $45,000 at t...

a Mr T has the following shares Ordinary business income 11008 Separately st ...

Refer to the facts in the preceding problem. Mr. T is a 10 percent general partner in

Question:

Refer to the facts in the preceding problem. Mr. T is a 10 percent general partner in KLMN. During the year, he received a $1,000 cash from KLMN.
a. Compute Mr. T’s share of ordinary income and separately stated items.
b. If Mr. T’s adjusted basis in his KLMN interest was $45,000 at the beginning of the year, compute his adjusted basis at the end of the year. Assume that KLMN’s debt did not change during the year.
c. How would your basis computation change if KLMN’s debt at the end of the year was $28,000 more than its debt at the beginning of the year? Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most... Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...