Jose, Mahlon, and Eric Are Partners in New Communications Partnership

question 73

Multiple Choice

Jose, Mahlon, and Eric are partners in New Communications Partnership. Jose owns a 50% interest, Mahlon owns a 35% interest, and Eric owns a 15% interest. During the current year (the first year of operation for the enterprise) , the business has a loss. Although the partnership is established as a general partnership, Jose functions as the manager and performs all of the day-to-day duties of a chief operating officer. Mahlon and Eric are merely investors who receive monthly reports about the business. At the close of the current tax year, each partner will receive a share of the partnership loss. Which of the partners will be able to deduct his (their) share of the partnership loss?
I.Jose
II.Mahlon
III.Eric
​

• A)Mahlon
• B)Jose, Mahlon, and Eric
• C)Jose
• D)Jose and Mahlon
• E)Mahlon and Eric

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Definitions:

Cognitive Decline

The gradual deterioration of cognitive functions, such as memory and thinking skills, often associated with aging or neurological diseases.

Idiosyncrasy of Ideas

Unique or personal thought patterns or ideas that are characteristic to an individual.

Concordance Rate

The probability that a person with a particular familial relationship to a patient (e.g., an identical twin) has the same disorder as the patient.

Schizophrenic Twins

Refers to twin studies involving individuals with schizophrenia, which are used to understand the contribution of genetic and environmental factors to the disorder.