Aiden has a 35% capital interest in the Oro Partnership and is entitled to a yearly guaranteed payment of $40,000. As of January 1, 2021, Aiden's basis in the partnership interest is $87,000. During tax year 2021, Oro recorded the following transactions. Operating profit (after consideration of guaranteed payment) Interest income on City of Seattle bonds Short-term capital loss Long-term capital gain Funds borrowed from bank to provide working capital $410,000 20,000 5,000 7,000 30,000 During 2021, Aiden withdrew cash of $70,000 from Oro to help cover his living expenses. What is Aiden's basis in his partnership interest as of January 1, 2022? 87,100
Aiden has a 35% capital interest in the Oro Partnership and is entitled to a yearly guaranteed payment of $40,000. As of January 1, 2021, Aiden's basis in the partnership interest is $87,000. During tax year 2021, Oro recorded the following transactions. Operating profit (after consideration of guaranteed payment) Interest income on City of Seattle bonds Short-term capital loss Long-term capital gain Funds borrowed from bank to provide working capital $410,000 20,000 5,000 7,000 30,000 During 2021, Aiden withdrew cash of $70,000 from Oro to help cover his living expenses. What is Aiden's basis in his partnership interest as of January 1, 2022? 87,100
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Problem 20-56 (LO. 9)
Aiden has a 35% capital interest in the Oro Partnership and is entitled to a yearly guaranteed payment of $40,000. As of January 1, 2021,
Aiden's basis in the partnership interest is $87,000. During tax year 2021, Oro recorded the following transactions.
Operating profit (after consideration of guaranteed payment)
Interest income on City of Seattle bonds
Short-term capital loss
Long-term capital gain
Funds borrowed from bank to provide working capital
During 2021, Aiden withdrew cash of $70,000 from Oro to help cover his living expenses.
What is Aiden's basis in his partnership interest as of January 1, 2022?
87,100
$410,000
20,000
5,000
7,000
30,000
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