On January 1, Helmut Pays $2,000 for a 10% Capital

question 10

Multiple Choice

On January 1, Helmut pays $2,000 for a 10% capital, profits, and loss interest in a partnership, which has recourse liabilities of $20,000. The partners share economic risk of loss from recourse liabilities in the same way they share partnership losses. In the same year, the partnership incurs losses of $6,000 and the recourse liabilities increase by $5,000. Helmut and the partnership use a calendar tax year-end. Helmut's basis at year-end is

• A)$1,500.
• B)$2,000.
• C)$3,500.
• D)$3,900.

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Definitions:

Walk in/Open Hours-Con

Describes business or service hours during which individuals can arrive without an appointment and expect to receive service.

No Show

A term used to describe a situation where an individual fails to appear for a scheduled appointment or meeting without prior notice.

Lab

Short for laboratory, a controlled environment where scientific research, experiments, and measurement are carried out.

Matrix

A surrounding substance or environment in which something else develops, operates, or is contained; in biology, the intercellular substance of a tissue.