Harold Has a 50% Interest in a General Partnership That

question 55

Multiple Choice

Harold has a 50% interest in a general partnership that has a $14,000 loss for the year. He materially participates in the partnership, his basis in the partnership is $10,000 at the beginning of the year. He also has salary from other employment of $46,000. If he is single and claims the standard deduction, what are his taxable income and tax liability, respectively, in 2018?

• A) $27,000; $3,050
• B) $39,000; $4,490
• C) $46,000; $5,330
• D) None; $0

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Definitions:

Arterial Blood Sample

A sample of blood taken from an artery that is often used to measure gases, such as oxygen and carbon dioxide, in the blood.

Acid-Base Balance

The mechanism by which the body maintains its blood pH within the narrow range necessary for optimal enzyme function and metabolic processes.

Body Fluids

Liquids within the bodies of living people or animals, such as blood, urine, and saliva, that carry out various functions.

Hormone Levels

Concentrations of hormones in the body, which can affect a wide range of bodily functions from growth to mood regulation.