Emma Is a 40% General Partner of JohnsonPartners That Reported

question 65

Multiple Choice

Emma is a 40% General Partner of JohnsonPartners that reported a net loss of $50,000 for the year.Emma joined the partnership on January 1 of the current year with a beginning basis of $4,000.During the year, JohnsonPartners took out a bank loan for $25,000.How much of the loss can Emma deduct on her tax return for the year?

• A)$0
• B)$4,000
• C)$14,000
• D)$20,000

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Definitions:

Rush-Bagot Treaty

An agreement between the United States and Britain in 1817 that significantly reduced naval armaments on the Great Lakes, marking an early example of arms control efforts.

Naval Forces

Military forces primarily responsible for warfare at sea, including the operation of ships and submarines, often crucial for a nation's defense, power projection, and maintaining control over sea lanes.

Great Lakes

A group of five large, interconnected freshwater lakes on the border between the United States and Canada, comprising Lakes Superior, Michigan, Huron, Erie, and Ontario.

McCulloch V. Maryland

A landmark Supreme Court case in 1819 that established the principle of national supremacy and the constitutionality of a federal bank.