As of early 2014, Margaret's adjusted basis in her 50 percent interest in MP Partnership, a calendar-year general partnership, was $10,000. During 2014, Margaret did not make any additional contributions to the MP Partnership, and Margaret's share of the MP Partnership's liabilities did not change. During 2014, MP Partnership distributed $5,000 to Margaret, and MP Partnership had the following items of partnership income, deductions, gains, and losses for 2014:

Separately reported taxable income $30,000

Tax-exempt interest $10,000

Capital loss ($20,000)

What is Margaret's adjusted basis in her partnership interest in the MP Partnership at the end of 2014?

Answer rating: 100% (QA)

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