Funky Chicken Is a Calendar Year General Partnership with the Following

question 74

Multiple Choice

Funky Chicken is a calendar year general partnership with the following current year information:
Operating loss $\quad$$\quad$$\quad$$\quad$ $ (300,000 )
Liabilities:
Note payable, Big Bank $\quad$$\quad$ 30,000
Note payable, June Cross $\quad$$\quad$ 20,000
On January 1 June Cross bought 60% of Funky Chicken for $45,000. How much of the operating loss may Cross deduct currently? Assume the excess business loss limitation does not apply.

• A) $57,000
• B) $80,000
• C) $65,000
• D) $75,000