Harold Has a 50% Interest in a General Partnership That

Multiple Choice

Harold has a 50% interest in a general partnership that has a $14,000 loss for the year.He materially participates in the partnership, his basis in the partnership is $10,000 at the beginning of the year.He also has salary from other employment of $46,000.What is Harold's basis in the partnership at the end of the year?

A) $14,000
B) $10,000
C) $7,000
D) $3,000