Dean is a 25% partner in Target Partnership. Dean's tax basis in Target on January 1, 2014, was $20,000. AT the end of 2014, Dean received a non-liquidating cash distribution of $8,000 from Target. Target's 2014 accounts recorded the following items:
Municipal bond interest income $12,000
Ordinary income : $40,000
What was Dean's tax basis in Target on December 31, 2014?
a. $15,000
b. $23,000
c. $25,000
d. $30,000
Answer: C
CPA Exam
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