Larry’s tax basis in his partnership interest at the beginning of the year was $27,500. if his share of the partnership debt increased by $13,000 during the year and his share of partnership income for the year is $6,500, what is his tax basis in his partnership interest at the end of the year?

Pear co.’s income statement for the year ended december 31, as prepared by pear’s controller, reported income before taxes of $125,000. the auditor questioned the following amounts that had been included in income before taxes: equity in earnings of cinn co. $ 40,000 dividends received from cinn 8,000 adjustments to profits of prior years for arithmetical errors in depreciation (35,000) pear owns 40% of cinn’s common stock, and no acquisition differentials are relevant. pear’s december 31 income statement should report income before taxes of