On January 1, 2026 Rutherford had a basis in his Hayes Partn…

On January 1, 2026 Rutherford had a basis in his Hayes Partnership interest of $5,000. Rutherford owns a 25% interest in Hayes Partnership. For 2026 Hayes Partnership reported the following items:    Ordinary business income $ 100,000   §1231 gain     15,000   Charitable contributions     25,000   Tax-exempt income       3,000   Bank of Fayetteville loan     12,000   What is Rutherford’s outside basis after adjustment for his share of these items?

Andrew has a 30% interest in the Johnson Partnership and rec…

Andrew has a 30% interest in the Johnson Partnership and received a guaranteed payment of $40,000. In 2025, Johnson Partnership reports ordinary income of $30,000 and capital gains of $60,000 before taking into account Andrew’s guaranteed payment. What is the amount and character of all income or loss that Andrew must report as a result of partnership activities?

Garfield Inc. has been an S corporation since its inception….

Garfield Inc. has been an S corporation since its inception. On July 15, 2026 Garfield Inc. distributed $50,000 to James. His basis in his Garfield Inc. stock on January 1, 2026 was $30,000. For 2026, James was allocated $10,000 of ordinary income from Garfield Inc. and no separately stated items. What is the total amount of income James recognizes related to Garfield Inc. in 2026?