Roger basis in the partnership interest


Roger is a 30% partner in the ROC Partnership. At the beginning of the tax year. Roger's basis in partnerhips interest was $60,000, including his share of partnership liabilities. During the current year, ROC reported a net ordinary income of $40,000. In addition, ROC distributed $5,000 to each of the partners ($15,000 total). At the end of the year, Roger's share of partnership liabilities increased by $20,000. Roger's basis in the partnership interest at the end of the year is:

a. $60,000

b. $75,000

c. $87,000

d. $120,000

e. none of the above

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Accounting Basics: Roger basis in the partnership interest
Reference No:- TGS074259

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