Partner Josh has a 50% interest and an opening adjusted basis of $21,000 in a partnership. Josh’s share of partnership items was as follows:

• Dividends $2,000
• Tax exempt income $1,000
• Charitable Contributions $1,000
• Fines & Penalties $400

Remember that Josh owned 50% of the partnership. Total Distribution of cash to the partners was $26,000. For the year the partnership had a total $40,000 decrease in liabilities.
Compute Josh’s ending basis Show calculation in the proper order and label each line. No label means no credit.

Answer rating: 100% (QA)

Opening Adjusted capital ADD Dividends Tax exem... View the full answer