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W is a partner in the equal WXYZ partnership. At the beginning of the year, his...

W is a partner in the equal WXYZ partnership. At the beginning of the year, his basis in his partnership interest is $60,000. On Jan. 15, W takes a draw against earnings of $40,000. On June 1, the partnership pays off $60,000 of debt. On Sept. 1, W gets a distribution of cash of $30,000 that is a draw against earnings. The partnership’s income from the year is $250,000. What is the effect of each of these items on W’s basis? Show the order of distributions, pay off of debt and income would have on basis in your answer.

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