Last Year,Mr

question 49

Multiple Choice

Last year,Mr.Margot purchased a limited interest in a business partnership,which is his only passive activity.Last year,he was allocated $14,900 of the partnership's ordinary business loss.This year,he was allocated $7,700 of the partnership's ordinary business income.Which of the following statements is false?

• A)Last year,Mr.Margot could not deduct any of his allocated partnership loss.
• B)This year,Mr.Margot can deduct $7,700 of last year's loss.
• C)Mr.Margot has a $7,200 passive activity loss carryforward into next year.
• D)None of the above statements is false.

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Definitions:

Variable Factors

Inputs or resources whose usage level can be altered in the short run to influence the level of output produced.

Warehouse Space

The area available in a warehouse used for the storage of goods.

Cost Function

An equation or formula that determines the total cost of production based on the relationship between costs and output levels.

Profit-Maximizing Output

The level of production at which a business achieves the highest possible profit, balancing costs against revenues.