At the Beginning of the Tax Year,Zach's Basis for His

question 115

Multiple Choice

At the beginning of the tax year,Zach's basis for his partnership interest and his amount at risk in the partnership was $30,000.His share of partnership items for the year consisted of tax-exempt interest income of $2,000 and an ordinary loss of $44,000.He also received a distribution from the partnership of $20,000 cash during the year.For the tax year,Zach will report:

• A)A nontaxable distribution of $20,000, an ordinary loss of $10,000, and a suspended loss carryforward of $34,000.
• B)An ordinary loss of $32,000, a suspended loss carryforward of $12,000, and a taxable distribution of $20,000.
• C)A nontaxable distribution of $20,000, an ordinary loss of $12,000, and a suspended loss carryforward of $32,000.
• D)An ordinary loss of $44,000 and a nontaxable distribution of $20,000.

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Definitions:

Proxemics

The study of human use of space and the effects that population density has on behavior, communication, and social interaction.

Nonverbal Communication

The transfer of information or feelings without the use of words; this includes gestures, facial expressions, body language, and tone of voice.

Selective Expectation

The psychological phenomenon where individuals perceive and interpret information based on their preconceptions, leading to a biased view of outcomes.

Productivity Suffers

A situation where the efficiency or output of work decreases due to various factors.