Question: The following occurs to a one-half partner whose basis in the partnership is $40,000. A. Share of the partnership loss is $20,000. B. Partnership borrows

The following occurs to a one-half partner whose basis in the partnership is $40,000.

A. Share of the partnership loss is $20,000.

B. Partnership borrows $40,000.

C. Share of undistributed partnership income $20,000.

D. Partnership distributes his share of the unrealized receivables worth $5000

E. Partnership distributes cash of $70,000.

Discuss the total tax consequences to the partner.

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