At the Beginning of This Year, Edmond and Samuel Were

question 31

Multiple Choice

At the beginning of this year, Edmond and Samuel were equal partners in a partnership that uses the calendar year as its tax year. On October 1, this year, Joan contributed $48,000 cash for a one-third interest in the partnership. The interests of both Edmond and Samuel drop to one-third. The partnership reports a $36,000 ordinary loss for the current tax year ending December 31. The loss allocation to Samuel (one of the original partners) is

• A)$12,000.
• B)$13,500.
• C)$16,500.
• D)$18,000.

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Definitions:

Clinical Psychologist

A professional specializing in diagnosing and treating mental health disorders, emotional disturbances, and dysfunctional behavior through various therapeutic methods.

Selective Serotonin Reuptake Inhibitor

A group of medications often prescribed for depression that function by augmenting the amount of serotonin in the brain.

Prozac

A brand name for fluoxetine, a selective serotonin reuptake inhibitor (SSRI) antidepressant medication used to treat depression and other mood disorders.

Xanax

A prescription medication primarily used to treat anxiety and panic disorders.