A Partnership Has One General Partner, Allen, Who Materially Participates

question 90

Multiple Choice

A partnership has one general partner, Allen, who materially participates in the business. Allen had a $30,000 distributive share of ordinary losses for this year and the partnership had no separately stated gains or losses. There are no changes in liabilities during this year and there are no additional contributions or distributions. At the beginning of this year, the Sec. 705 basis was $40,000 and the at-risk basis was $15,000. The basis on December 31 of this year based on the above information is

• A)$10,000.
• B)$15,000.
• C)$25,000.
• D)$40,000.

---

Definitions:

Project Duration

The total period from the start to the completion of a project.

Negative Total Float

The amount of time that needs to be saved on a project schedule to meet the deadline, indicating a project is behind schedule.

Concrete

A construction material composed of cement, water, aggregates (sand and gravel), and possibly admixtures, used for building a wide range of structures.

Commodity

A basic good used in commerce that is interchangeable with other goods of the same type; common examples include oil, grain, and metals.