The STU Partnership, an Electing Large Partnership, Has No Passive

question 38

Multiple Choice

The STU Partnership, an electing Large Partnership, has no passive activities and reports the following transactions for the year: net long-term capital losses $50,000, Sec. 1231 gain $60,000, ordinary income $20,000, charitable contributions $15,000, and tax-exempt income $2,000. How much will be reported as long-term capital gains to its partners?

• A)$0
• B)$10,000
• C)$50,000
• D)$60,000

---

Definitions:

Hedge Strategy

Investment strategies intended to reduce potential losses that may be incurred from adverse price movements in assets.

Short Oil Futures

A speculative strategy involving the sale of oil futures contracts in anticipation of oil prices falling, intending to buy back at a lower price.

Long Steel Futures

Financial contracts to buy steel at a predetermined price at a specified time in the future, often used as a hedge against price fluctuations.

Shorting Index Futures

A strategy involving selling index futures contracts in anticipation of a decline in the index's value to profit from falling market prices.