Joey and Bob Each Have a 50% Interest in a Partnership.Both

Multiple Choice

Joey and Bob each have a 50% interest in a Partnership.Both Joey and the partnership file returns on a calendar-year basis.Partnership Q had a $12,000 loss in 2018.Joey's adjusted basis in his partnership interest on January 1,2018,was $5,000.In 2019,the partnership had a profit of $10,000.Assuming there were no other adjustments to Joey's basis in the partnership,what amount of partnership income (loss) should Joey show on his 2018 and 2019 individual income tax returns?

A) $$\begin{array} { | l | l |} \hline 2018 & 2019 \\\hline ( \$ 5,000 ) & \$ 4,000 \\\hline\end{array}$$
B) $$\begin{array} { | l | l |} \hline 2018 & 2019 \\\hline ( \$ 5,000 ) & \$ 5,000 \\\hline\end{array}$$
C) $$\begin{array} { | l | l |} \hline 2018 & 2019 \\\hline ( \$ 6,000 ) & \$ 4,000 \\\hline\end{array}$$
D) $$\begin{array} { | l | l |} \hline 2018 & 2019 \\\hline ( \$ 6,000 ) & \$ 5,000 \\\hline\end{array}$$