CPA Tax Compliance & Planning (TCP) Question of the Day

Test your knowledge with a hand-picked multiple-choice question.

Partner P in ABC Partnership (calendar year). Beginning outside basis: 30,000. Current-year items: Cash contribution 5,000; Share of ordinary income 12,000; Tax-exempt interest 1,000; Nondeductible fines 500; Cash distribution 10,000; Increase in share of partnership liabilities 3,000.

What is P's year-end outside tax basis in the partnership interest?

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