Partnership Taxable Income Assignment

Assuming A and B share equality in the profits of the AB Partnership. on Jan. 1,20×3, A's basis in his partnership is $30,000 and B's basis is $5,000. Each partner received a partnership distribution of $20,000 cash on July 11,20×3.

Partnership taxable income for 20×3 was $24,000. Neither of the partners made any contributions to the partnership during 20×3 and their share of partnership liabilities did not change during the year. which statement do you disagree with? A. partner B must recognize a gain of $3,000 on the distribution. B. B could have avoided the $3,000 taxable gain from excess distributions if he had contributed $3,000 to the partnership by Dec. 31,20×3. C. the determination of the partner's basis in his partnership interest is typically made at the end of the partnership taxable year. D. in determining the amount of gain to be recognized by B, current distributions were offset against B's beginning basis on the basis of when the distribution was made. .