Rick Is a 30% Partner in the ROC Partnership

Multiple Choice

Rick is a 30% partner in the ROC Partnership.At the beginning of the tax year, Rick's basis in the partnership interest was $60,000, including his share of partnership liabilities.During the current year, ROC reported net ordinary income of $40,000.In addition, ROC distributed $5,000 to each of the partners ($15,000 total) .At the end of the year, Rick's share of partnership liabilities increased by $20,000.Rick's basis in the partnership interest at the end of the year is:

A) $120,000.
B) $87,000.
C) $75,000.
D) $60,000.
E) None of the above.