Ryan Is a 25% Partner in the ROCC Partnership

Ryan is a 25% partner in the ROCC Partnership. At the beginning of the tax year, Ryan's basis in the partnership interest was $90,000, including his share of partnership liabilities. During the current year, ROCC reported net ordinary income of $100,000. In addition, ROCC distributed $10,000 to each of the partners ($40,000 total) . At the end of the year, Ryan's share of partnership liabilities increased by $10,000. Ryan's basis in the partnership interest at the end of the year is:

A) $90,000.
B) $100,000.
C) $115,000.
D) $125,000.
E) $190,000.

Correct Answer:

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