On January 1, Abel was a 25% partner in Corn General Partnership, which had partnership liabilities of
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Question:
On January 1, Abel was a 25% partner in Corn General Partnership, which had partnership liabilities of $300,000. On January 2, a new partner was admitted and Abel’s interest was reduced to 20%. On April 1, Corn repaid a $100,000 general partnership loan. Ignoring any income, loss, or distributions for the year, what was the net effect of the transactions described for Abel’s tax basis in Corn partnership interest?
Group of answer choices
Has no effect.
Decrease of $35,000.
Increase of $15,000
Decrease of $75,000.
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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