A Taxpayer's At-Risk Amount in an Activity Is Increased By

question 54

Multiple Choice

A taxpayer's at-risk amount in an activity is increased by:

• A)a reduction in the amount of debt related to the activity that the taxpayer is responsible for paying.
• B)cash contributions to the activity.
• C)cash distributions from the activity.
• D)a reduction in the amount of debt related to the activity that the taxpayer is responsible for paying and cash contributions to the activity.
• E)cash contributions to the activity and Cash distributions from the activity.

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Definitions:

Continuing Operations

Refers to the business activities that are expected to continue into the foreseeable future, as opposed to those that are being discontinued.

Discontinued Operations

The disposal of a significant component of a business.

Generally Accepted Accounting Principles

A set of accounting standards and procedures used in the United States to govern financial reporting and ensure consistency across organizations.

Quality Of Earnings

An assessment of the degree to which a company's earnings are considered reliable or sustainable, and free from artificial inflation or deflation.