Priya Is a Partner in a Partnership

question 101

Multiple Choice

Priya is a partner in a partnership.The partnership has incurred a loss for the year.Priya's ability to recognize the loss will be tested in the following order:

• A)(1)basis limitations,(2)excess business loss limitations,(3)passive loss limitations.
• B)(1)basis limitations,(2)passive loss limitations,(3)excess business loss limitations.
• C)(1)passive loss limitations,(2)basis limitations,(3)excess business loss limitations.
• D)(1)excess business loss limitations,(2)basis limitations,(3)passive loss limitations.

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