Judy Owns a 20% Interest in a Partnership (Not Real

question 36

True/False

Judy owns a 20% interest in a partnership (not real estate) in which her at-risk amount was $35,000 at the beginning of the year. The partnership borrowed $50,000 on a recourse note and made a $40,000 profit during the year. Her at-risk amount at the end of the year is $43,000.

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Definitions:

Long Delays

Extended periods of waiting time beyond the expected or scheduled, often causing inconvenience or impacting plans.

Necessary

Essential items or actions required for a specific purpose or to achieve a certain outcome.

Examination for Discovery

A pre-trial process in litigation where parties to a lawsuit are interrogated under oath by the opposing lawyer to discover facts relevant to the case.

Examination for Discovery

A legal proceeding in which a party to a lawsuit has the opportunity to question the opposing party or witness under oath before trial, to discover facts and gather evidence.