In 2017, Joanne Invested $90,000 for a 20% Interest in a Limited

question 6

Multiple Choice

In 2017, Joanne invested $90,000 for a 20% interest in a limited liability company (LLC) in which she is a material participant. The LLC reported losses of $340,000 in 2017 and $180,000 in 2018. Joanne's share of the LLC's losses was $68,000 in 2017 and $36,000 in 2018. How much of these losses can Joanne deduct?

• A)$68,000 in 2017; $36,000 in 2018.
• B)$68,000 in 2017; $22,000 in 2018.
• C)$0 in 2017; $0 in 2018.
• D)$68,000 in 2017; $0 in 2018.
• E)None of the above.

---

Definitions:

Negative Reinforcement

A behavioral principle where the removal of an unfavorable event following a response increases the likelihood of that response being repeated in the future.

Positive Reinforcement

A technique in behavior modification that involves the addition of a rewarding stimulus following a desirable behavior, aiming to increase the likelihood of the behavior's occurrence.

Punishment

The imposition of a penalty as retribution for an offense, or the action of disciplining someone to correct or deter undesirable behavior.

Temporary Effect

A short-term result or consequence that fades over time without long-lasting implications.