Thomas and Miles Are Equal Partners in a Partnership, Which

question 41

Multiple Choice

Thomas and Miles are equal partners in a partnership, which uses the calendar year as its tax year. On September 1, this year, Katie contributed $60,000 cash for a one-third interest in the partnership. The partnership reports a $24,000 ordinary loss for the tax year ending on December 31 of this year. The loss allocation to Katie (new partner) is

• A)$0.
• B)$2,667.
• C)$4,000.
• D)$8,000.