Elena Owns 25% of a Partnership That Reported Net Income

Multiple Choice

Elena owns 25% of a partnership that reported net income of $100,000 for the year.Elena's basis in her partnership interest is $20,000 at the beginning of the year.During the year $5,000 was distributed to Elena from the partnership.What is Elena's basis at the end of the year?

A) $40,000
B) $30,000
C) $25,000
D) $20,000