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Question: Advanced Taxation.

Naruto is an equal partner in the N&K Partnership. At the beginning of this tax year, Naruto's adjusted basis in N&K was $60,000 (including each partner's $15,000 share of the partnership's $30,000 of liabilities). During the current year, N&K repaid $25,000 of the debt and borrowed $20,000 for which Naruto is equally liable with his partner. In the current year ended December 31, N&K also sustained a net operating loss of $50,000 and earned $2,000 of interest income from investments. How much is Naruto's outside basis in N&K at the beginning of the next tax year?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92760828

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