Calculate the ending tax capital accounts at the end of the year for each partner based on the
following facts:
• Partner T and Partner M each contribute $100,000 cash to form TM Partnership.
• T and M will share all items of the partnership 50%/50%.
• TM Partnership purchases a commercial rental property for $190,000 in cash.
• During the year, the partnership is paid rental income of $60,000 and pays tax deductible
expenses of $10,000.
• The partnership deducts $4,000 of tax depreciation for the year.
• At the end of the year, the partnership distributes all of its cash, except $20,000.

Answer rating: 100% (QA)

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