At the Beginning of This Year,Edmond and Samuel Were Equal

question 86

Multiple Choice

At the beginning of this year,Edmond and Samuel were equal partners in a partnership that uses the calendar year as its tax year.On October 1,this year,Joan contributed $48,000 cash for a one-third interest in the partnership.The interests of both Edmond and Samuel drop to one-third.The partnership reports a $36,000 ordinary loss for the current tax year ending December 31.The loss allocation to Samuel is (assume the elective proration method with a monthly convention)

• A)$12,000.
• B)$13,500.
• C)$16,500.
• D)$18,000.

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