Answer:
$40,000
Explanation:
From the question above Elaine's original basis in the Hornbeam Partnership is $30,000
Her share of the taxable income is from the partnership is $90,000
Elaine has received $80,000 in cash distribution from the partnership
Therefore, Elaine's current basis in her partnership interest can be calculated as follows
Current basis= [Original basis + ( Share of taxable income-Cash distribution)
= $30,000+($90,000-$80,000)
= $30,000+$10,000
= $40,000
Hence Elaine's current basis in her partnership interest is $40,000
