John is a 25%
Chapter20: Corporations And Parterships
Section: Chapter Questions
Problem 58P
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Question
John is a 25% partner in Gross Partnership . John’s tax basis in Gross on January 1, 2022, was $20,000. At the end of 2022, John received a nonliquidating cash distribution of $8,000 from Gross. Gross’s 2022 accounts recorded the following items
Municipal Bond Interest Income $12,000
Ordinary income $40,000
What was John’s tax basis in Gross on December 31, 2022?
Select one:
a.
$30,000
b.
$25,000
c.
$15,000
d.
$23,000
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