Kayce owns 50% of Blue Socks Partnership. Blue Socks has $100,000 net taxable income in...
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Accounting
Kayce owns 50% of Blue Socks Partnership. Blue Socks has $100,000 net taxable income in 2019. Kayce withdraws $30,000 from Blue Sock. Which of the following are true?
Group of answer choices
A Kayces basis will decrease, but she will pay no tax on her withdrawal
B Kayces will pay tax on the income Blue Socks earned and on her withdrawal
C Kayces basis will remain the same, but she will pay tax on her withdrawal
D Kayces basis will increase and decrease simultaneously, but she will pay no tax on her withdrawal
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