The Walden Partnership Has Two 20 Percent General Partners and Six

Essay

The Walden Partnership has two 20 percent general partners and six 10 percent limited partners. During the current year, the partnership paid off $50,000 of notes payable, purchased machinery for $100,000 on a nonrecourse note, borrowed $20,000 for working capital, and had $80,000 income from operations. If the general partners each had a basis of $30,000 in their partnership interests at the beginning of the year, what is each general partner's year-end basis?