In 2017, Joanne Invested $90,000 for a 20% Interest in a Limited

question 6

Multiple Choice

In 2017, Joanne invested $90,000 for a 20% interest in a limited liability company (LLC) in which she is a material participant. The LLC reported losses of $340,000 in 2017 and $180,000 in 2018. Joanne's share of the LLC's losses was $68,000 in 2017 and $36,000 in 2018. How much of these losses can Joanne deduct?

• A)$68,000 in 2017; $36,000 in 2018.
• B)$68,000 in 2017; $22,000 in 2018.
• C)$0 in 2017; $0 in 2018.
• D)$68,000 in 2017; $0 in 2018.
• E)None of the above.

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Definitions:

Geert Hofstede

A Dutch social psychologist known for his research on cross-cultural communication and the dimensions of national cultures.

National Culture

The set of shared values, beliefs, customs, and behaviors that define a nation or country, influencing individual and collective identities.

Mental Programming

The cognitive patterns and ways of thinking that are deeply ingrained in an individual or culture, influencing behavior and perceptions.

Up-and-Down Movement

Vertical motion, typically referring to objects or points moving higher or lower in position.