Gray is a 50% partner in Fabco Partnership. Gray’s tax basis in Fabco on January 1, 2007, was $5,000. Fabco made no distributions to the partners during 2007, and recorded the following:
|
Ordinary income |
$20,000 |
|
Tax exempt income |
8,000 |
|
Portfolio income |
4,000 |
What is Gray’s tax basis in Fabco on December 31, 2007?
- $21,000
- $16,000
- $12,000
- $10,000