Partner Spence Had the Following Items Reported on a Partnership

Partner Spence had the following items reported on a partnership Schedule K-1: $\begin{array}{lr}\text { Ordinary income }&\$57,000\\\text { Interest income } & 4,900 \\\text { Dividend income } & 5,300 \\\text { Guaranteed payment } & 15,000 \\\text { Section 179 expense } & 16,000 \\\text { Cash distribution } & 20,000\end{array}$ Spence had a basis in his partnership interest of $23,000 at the beginning of the year.What is Spence's basis in his partnership interest at the end of the year?

A) $21,000.
B) $31,200.
C) $54,200.
D) $70,200.

Correct Answer:

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