At the beginning of 2016, Margarets adjusted basis in her 50 percent interest in MP...
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Accounting
At the beginning of 2016, Margarets adjusted basis in her 50 percent interest in MP Partnership, a calendar year general partnership, was $10,000. During 2015, Margaret did not make any additional contributions to MP Partnership, and Margarets share of MP Partnership liabilities did not change. During 2015, MP Partnership distributed $5,000 to Margaret, and MP Partnership had the following items of partnership income, deduction, gain and loss for 2016:
Separately stated taxable income $30,000
Tax-exempt interest $10,000
Capital loss ($20,000)
What is Margarets adjusted basis in her partnership interest in MP Partnership at the end of 2016?
a. 0
b. $10,000
c. $15,000
d. $25,000
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