Shana is a 20 percent limited partner in the STU partnership. Her basis in her partnership interest

Question:

Shana is a 20 percent limited partner in the STU partnership. Her basis in her partnership interest is $40,000 when she decides to abandon her partnership interest. The partnership's balance sheet reports net assets of $203,000, liabilities of $200,000 and partners' capital accounts as follows:

Shana-Capital........................1,000

Tom-Capital..........................1,000

Urban-Capital........................1,000

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... 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...