Thank you, @Rick19744, for the quick reply!
Accounting is often counterintuitive to me. 🙂 My only question here, really, is about the basis. Other items I understand.
For example, when you say that basis should be "adjusted annually for the applicable lines on the K-1", how would I know which lines affect it? Hopefully, this is a non-issue for newer partnerships with K-1s beginning after 2019 or so, where Section L now represents the basis?
Similarly, why is 4+5+54 the new basis? It looks like entries from certain fields of Sec III get added to the previous value, excluding the liquidating cash distribution. Basically, what is the basis adjustment formula, and which fields are involved?
