Problem $14-23($LO$.5,6)$

The BCD Partnership plans to distribute cash of $$20,000$ to partner Brad at the end of the tax year. The partnership reported a loss for the year, and Brad's share of the loss is $$10,000.$ Brad holds a basis of $$15,000$ in the partnershipinterest, including his share of partnership liabilities. The partnership expects to report substantial income in future years.

If an amount is zero, enter $"0".$

Question Content Area

a$.$How does Brad calculate the ending basis in the BCD Partnership interest?

$$Losses may be deducted under $704($d$).$

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$$Distributions from the partnership decrease basis.

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$$Contributions and income items increase the basis.

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$$Allocation of deductions.

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