Stuart Owns a 20% Interest in a Partnership (Not Involved

question 29

Multiple Choice

Stuart owns a 20% interest in a partnership (not involved in real estate) in which his at-risk amount was $18,000 at the beginning of the year.The partnership produces a $50,000 loss for the year.What is Stuart's at-risk amount at the end of the year?

• A)$0.
• B)$8,000.
• C)$10,000.
• D)($32,000).

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Definitions:

Winding Up

Winding up is the process of concluding a company's affairs, settling its liabilities, and distributing any remaining assets to the shareholders or owners upon dissolution.

Crane

A type of machinery that is used to lift and move materials and objects in various settings, such as construction sites.

Buyout Price

The agreed-upon amount required to purchase someone's interest in a property, business, or contractual obligation, usually predetermined in a contractual agreement.

Nonwrongfully Dissociated

Pertaining to partners or members leaving an entity like a partnership or limited liability company under conditions that do not violate the agreement or law.