In 2016,Ethan Contributes Cash of $50,000 and Property with a Fair

question 34

Essay

In 2016,Ethan contributes cash of $50,000 and property with a fair market value of $100,000 and basis of $20,000 in exchange for a 20% interest in the EFP Partnership.The partnership is not a passive activity.For 2016,his share of partnership items were an ordinary loss of $80,000,interest income of $2,000,dividends of $5,000,and capital gains of $4,000.How much of the current year loss is deductible by Ethan and what is Ethan's at-risk amount on December 31,2016?

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Definitions:

I/O Modules

Hardware components in a control system that provide interfaces for input and output signals, facilitating communication between the processing unit and external devices.

PID Control

A type of feedback control system that uses Proportional, Integral, and Derivative terms to control an output variable, widely used in industrial control systems.

Mathematical Functions

Predefined operators or procedures in programming that perform calculations or mathematical operations on data.