Assume the same facts as in Problem 42. Prepare Amy’s tax-basis capital account rollforward from the beginning to the end of the tax year. How does her capital account differ from her basis as calculated in Problem 42?

Problem 42.

Amy and Mitchell are equal partners in the accrual basis AM Partnership. At the beginning of the current tax year, Amy’s capital account has a balance of $300,000, and the partnership has recourse debts of $200,000 payable to unrelated parties. Assume that all partnership recourse debt is shared equally between the partners. The following information about AM’s operations for the current year is obtained from the partnership’s records:
Ordinary income ................ $400,000
Interest income .......................... 4,000
Long-term capital loss ............ 6,000
Short-term capital gain......... 12,000
Charitable contribution .......... 4,000
Cash distribution to Amy .... 20,000