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42.   
LO.7, 9, 10 Amy and Mitchell are equal partners in the accrual basis AM Partner- ship. At the beginning of the current year, Amy’s capital account has a
balance of $300,000, and the partnership has recourse debts of $200,000 payable to unrelated parties. Assume that all partnership recourse debt is shared equally between the partners. The following information about AM’s operations for the cur- rent year is obtained from the partnership’s records.
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|
Ordinary income |
$400,000 |
|
Interest income |
4,000 |
|
Long-term capital loss |
6,000 |
|
Short-term capital gain |
12,000 |
|
Charitable contribution |
4,000 |
|
Cash distribution to Amy |
20,000 |
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Assume that year-end partnership debt payable to unrelated parties is $140,000. If all transactions are reflected in her beginning capital and basis in the same manner, what is Amy’s basis in the partnership interest:
a.     At the beginning of the year?
b.    At the end of the year?
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