Gus Is the General Partner and Laura Is the Limited

question 24

Multiple Choice

Gus is the general partner and Laura is the limited partner of GL Limited Partnership. Gus contributes $500,000 cash and Laura contributes a building with a fair market value of $600,000 (adjusted basis of $125,000) to the partnership.Gus and Laura share equally in partnership profits and losses.In 2008,the first year in business,GL obtains nonrecourse financing of $200,000 to cover operating expenses and incurs a $1,200,000 loss.How much loss may be passed through to Gus and Laura?

• A)$600,000 to Gus, $225,000 to Laura.
• B)$500,000 to Gus, $600,000 to Laura.
• C)$500,000 to Gus, $125,000 to Laura.
• D)$700,000 to Gus, $125,000 to Laura.
• E)None of the above.

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Definitions:

Grand Narrative

A broad, overarching story or theory that attempts to explain large-scale historical events and movements as coherent, unified phenomena.

Postmodern Theory

A theoretical stance that critiques grand narratives, emphasizes the role of language and symbols in social construction, and advocates for pluralism.

Classical Theoretical Tradition

A foundation in sociology and social theory that includes contributions from key thinkers like Marx, Weber, and Durkheim, focusing on the analysis of society and social phenomena.

Classic Theorists

Thinkers who have made significant contributions to social theory, including but not limited to Marx, Weber, and Durkheim, whose ideas form the foundation of sociological study.