Question: Gray is a 5 0 % partner in Fabco Partnership. Gray's tax basis in Fabco on January 1 , year 4 , was $ 5

Gray is a 50% partner in Fabco Partnership. Gray's tax basis in Fabco on January 1, year 4, was $5,000. Fabco made no distributions to the partners during year 4 and recorded the following:
Ordinary income$20,000Tax-exempt income8,000Portfolio income4,000
What is Gray's tax basis in Fabco on December 31, year 4?
a. $21,000
b. $16,000
c. $12,000
d. $10,000

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