Richard Has a 50% Interest in a Partnership,and He Materially

question 25

Multiple Choice

Richard has a 50% interest in a partnership,and he materially participates in the partnership's business.Richard's adjusted basis in the partnership was $60,000 at the beginning of the year,including his share of partnership liabilities.There were no distributions to Richard during the year.During the current year,the partnership borrowed $160,000 from a local bank to purchase equipment needed in the business.All of the partners are personally liable for all partnership debts.The partnership incurred a $320,000 loss this year.What amount can Richard claim as a loss from the partnership on his individual tax return this year?

• A)$60,000
• B)$80,000
• C)$140,000
• D)$160,000

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Definitions:

Shipping Security

Measures and protocols implemented to protect cargo from theft, loss, or damage during transportation.

Few Suppliers Approach

A market condition characterized by a small number of suppliers, often leading to less competition and potentially higher prices.

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Electronic Data Interchange, a system that allows the transfer of data between different companies using networks or the Internet.

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The percentage of a facility's total production capacity that is currently being used to produce goods or services.