A general partnership had the following information at the end of each of the years 20X0 and 20X1:20X0

Current liabilities $20,000

Long-term liabilities $50,000

Net income (or loss) N/A20X1

Current liabilities $20,000

Long-term liabilities $50,000

Net income (or loss ) ($40,000)All liabilities are recourse debt and partner M guaranteed all the long-term liabilities. M, a 10% owner, had a $10,000 basis in the partnership at the end of 20X0. M made no contributions or withdrawals during 20X1 or 20X2. How much is Ma's basis at the end of 20X1?$6,000

$10,000 

$33,000 

$51,000 

    • 6 years ago
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