A Partnership Has One General Partner, Allen, Who Materially Participates

question 90

Multiple Choice

A partnership has one general partner, Allen, who materially participates in the business. Allen had a $30,000 distributive share of ordinary losses for this year and the partnership had no separately stated gains or losses. There are no changes in liabilities during this year and there are no additional contributions or distributions. At the beginning of this year, the Sec. 705 basis was $40,000 and the at-risk basis was $15,000. The basis on December 31 of this year based on the above information is

• A)$10,000.
• B)$15,000.
• C)$25,000.
• D)$40,000.

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Definitions:

Rising Income Gap

The increasing disparity in income and wealth between the richest and poorest members of society, highlighting growing economic inequality.

Income Inequality

The irregular distribution of income across different economic participants at the household or individual level.

Highly Educated Workers

Individuals in the workforce who have attained a high level of education, typically holding a college degree or higher.

Temporary Assistance

Short-term aid provided by governments or organizations to individuals or families in need, often meant to support them until they regain financial independence.