Unrelated Individuals P, Q, R, and S Are Partners in PQRS

question 13

Multiple Choice

Unrelated individuals P, Q, R, and S are partners in PQRS Partnership.The partnership experienced an operating loss of $5,000 during the year.Based on the following information, how much loss can the partners deduct on their respective individual tax returns? $\begin{array}{lll}\text { Partner }&\text { Distributive Profit and Loss \% }&\text { Basis in Partnership}\\&&\text { Determined before Loss Distribution }\\\mathrm{P} & 40 & \$ 10,000 \\\mathrm{Q} & 25 & 8,000 \\\mathrm{R} & 25 & 1,000 \\\mathrm{~S} & 10 & 1,000\\&100 \%&\$20,000\end{array}$ The following answer choices are arranged in partner order of P, Q, R, and S.

• A)$2,000, $ 1,250, $ 1,250, $500
• B)$2,000, $ 1,250, $ 1,000, $500
• C)$2,000, $1,250, $0, $500
• D)$5,000, $3,000, $0, $0
• E)$4,000, $2,500, $2,500, $1,000

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Definitions:

Auditory Stimuli

Sounds or noises that elicit a response from the auditory system, impacting behavior and perception.

Pheromones

Chemical signals released by an organism that influence the behavior or physiology of others of the same species.

Menstrual Cycles

The regular natural change that occurs in the female reproductive system that makes pregnancy possible.

Martha McClintock

An American psychologist best known for her research on pheromones and their effect on women's menstrual cycles, also known for her work on social interactions affecting health and disease.