Partnership BPE's profits and losses are shared equally among the three partners. The adjusted basis of Partner E's interest in the partnership on January 1, 2022 was $95,000. On January 3, 2022, Partner E withdrew $18,000 in cash. The partnership reported $180,000 as ordinary income on its 2022 partnership return. In addition, $2,000 for non deductible meal expenses was shown on E's Schedule K-1 of Form 1065 along with $1,400 of tax exempt interest. What is the amount of E's basis in the partnership on December 31, 2022?

Partnership BPE's profits and losses are shared equally among the three partners. The adjusted basis of Partner E's interest in the partnership on January 1, 2022 was $95,000. On January 3, 2022, Partner E withdrew $18,000 in cash. The partnership reported $180,000 as ordinary income on its 2022 partnership return. In addition, $2,000 for non deductible meal expenses was shown on E's Schedule K-1 of Form 1065 along with $1,400 of tax exempt interest. What is the amount of E's basis in the partnership on December 31, 2022?

FINANCIAL ACCOUNTING

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ISBN:9781259964947

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Chapter1: Financial Statements And Business Decisions

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Question

Partnership BPE's profits and losses are shared equally among the three partners. The adjusted basis of
Partner E's interest in the partnership on January 1, 2022 was $95,000. On January 3, 2022, Partner E
withdrew $18,000 in cash. The partnership reported $180,000 as ordinary income on its 2022 partnership
return. In addition, $2,000 for non deductible meal expenses was shown on E's Schedule K-1 of Form 1065
along with $1,400 of tax exempt interest. What is the amount of E's basis in the partnership on December 31,
2022?

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