Manuel Purchased a 30% Interest in MAC General Partnership for $40,000

question 13

Multiple Choice

Manuel purchased a 30% interest in MAC general partnership for $40,000 cash and materially participated in the partnership for the entire year.The partnership had $50,000 in liabilities when Manuel purchased his interest and the liabilities increased $10,000 during the year.If the partnership incurred a $300,000 loss this year, how much of this loss can Manuel deduct?

• A)0
• B)$40,000
• C)$58,000
• D)$65,000

Comprehend strategies for customer retention and the importance of customer-driven cost management.

Differentiate between suitable and unsuitable supplier selection criteria.

Understand the principles and benefits of Just-In-Time (JIT) systems in inventory management.

Grasp the importance of collaborative relationships with suppliers in strategic cost management.

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Definitions:

Static Budget

A financial plan that does not change or adjust over the period, even when there are significant changes in the levels of activity.

Variable Costs

Expenses that change in proportion to the level of activity or production volume.

Static Budget

A budget that does not change or adapt over time, based on the assumption of a fixed level of activity.

Activity Index

The activity that causes changes in the behavior of costs.