Refer to the facts in the preceding problem. In 2017, YZ generated $7,000 ordinary business income and

Question:

Refer to the facts in the preceding problem. In 2017, YZ generated $7,000 ordinary business income and $18,000 dividend and interest income. The partnership made no distributions. At the end of the year, YZ had $21,000 debt.

a. How much partnership income will Zelda report on her 2017 return?

b. Compute Zelda's adjusted basis in her YZ interest at the end of 2017?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... 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...