A Partnership Has One General Partner, Allen, Who Materially Participates

question 90

Multiple Choice

A partnership has one general partner, Allen, who materially participates in the business. Allen had a $30,000 distributive share of ordinary losses for this year and the partnership had no separately stated gains or losses. There are no changes in liabilities during this year and there are no additional contributions or distributions. At the beginning of this year, the Sec. 705 basis was $40,000 and the at-risk basis was $15,000. The basis on December 31 of this year based on the above information is

• A)$10,000.
• B)$15,000.
• C)$25,000.
• D)$40,000.

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Definitions:

Distraction

A thing or a factor that diverts or shifts attention away from the intended focus, often leading to a decrease in the ability to concentrate.

Emotional Displays

involve the outward expression of emotions through facial expressions, body language, and vocal tones.

Emotional Regulation

The process by which individuals influence their emotions, how they experience and express them, and how they respond to the emotions of others.

Self-soothing

The ability to calm oneself down during or after experiencing distress, often through techniques like deep breathing or focusing on positive thoughts.