Rhonda has a basis of $8,000 in a partnership at the beginning of the year. She receives

Question:

Rhonda has a basis of $8,000 in a at the beginning of the year. She receives $12,000 in cash distributions, and her distributive share of income is $2,500.
a. Is Rhonda required to recognize any gain? If so, how much?
b. What is Rhonda’s ending basis in her interest? 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...