CPA 01762 :Becker

On January 2, 1993, Arch and Bean contribute cash equally to form the JK Partnership. Arch and Bean share profits and losses in a ratio of 75% to 25%, respectively. For 1993, the partnership's ordinary income was $40,000. A distribution of $5,000 was made to Arch during 1993. What is Arch's share of taxable income for 1993?

A-5000, b-10000, c- 20000, d-30000

correct ans is 30000

Arch's share 75% of 40000=30000,

but what happend to the distribution of 5000 to Arch?

I feel, that distribution to partner shoulb be duducted from partner's basis, so answer should be 30000-5000 = 25000 (which is not in the choice)

Appreciate if some one can explain

Thanks

Another p/ship question

Day's adjusted basis in LMN Partnership interest is $50,000. During the year Day received a nonliquidating distribution of $25,000 cash plus land with an adjusted basis of $15,000 to LMN and a fair market value of $20,000. How much is Day's basis in the land?

A-10000, B-15000, C,20000, D-25000

Answer is 15000

as per my understanding, basis of land should be 

adj basis is 50000-cash dist 25000= 25000 (remaining portion)

Appreciate if some one clarify above

Thanks