In the current year, Hoffa Partnership allocates ordinary business income of $4,000 to Jimmy, a...
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Accounting
In the current year, Hoffa Partnership allocates ordinary business income of $4,000 to Jimmy, a 40-percent partner. In addition, the partnership makes a cash distribution to Jimmy of $1,000, which is less than his basis in his partnership interest. What is the amount of partnership income Jimmy will need to recognize in the current year?
$0
$3,000
$4,000
$5,000
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