Last Year,Mr

question 49

Multiple Choice

Last year,Mr.Margot purchased a limited interest in a business partnership,which is his only passive activity.Last year,he was allocated $14,900 of the partnership's ordinary business loss.This year,he was allocated $7,700 of the partnership's ordinary business income.Which of the following statements is false?

• A)Last year,Mr.Margot could not deduct any of his allocated partnership loss.
• B)This year,Mr.Margot can deduct $7,700 of last year's loss.
• C)Mr.Margot has a $7,200 passive activity loss carryforward into next year.
• D)None of the above statements is false.

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Definitions:

Analytic Skills

The ability to analyze information and solve problems on a complex level through critical thinking and evaluation.

Left Half

Referring to the left side of a symmetrical object or entity, often used in contexts such as the left hemisphere of the brain, which is associated with analytical and language functions.

Frontal Lobes

Part of the brain located at the front of each cerebral hemisphere, responsible for voluntary movement, expressive language, and managing higher level executive functions.

Proper Sequence

An arrangement of events, actions, or processes in a logical or necessary order.