On January 2, Y1, Arch and Bean contribute $10,000 cash Partnership. Arch and Bean share profits and losses in a ratio of 50% to 50%, respectively. For Y1, the partnership's ordinary income was $40,000. In addition JK Partnership took out a loan for $20,000 and a distribution of $5,000 was made to Arch during Y1. What is Arch's basis in JK Partnership at the end of Y1? $25,000. O $5,000. O $35,000. $15,000.

On January 2, Y1, Arch and Bean contribute $10,000 cash Partnership. Arch and Bean share profits and losses in a ratio of 50% to 50%, respectively. For Y1, the partnership's ordinary income was $40,000. In addition JK Partnership took out a loan for $20,000 and a distribution of $5,000 was made to Arch during Y1. What is Arch's basis in JK Partnership at the end of Y1? $25,000. O $5,000. O $35,000. $15,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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