At the Beginning of the Tax Year,Zach's Basis for His

question 115

Multiple Choice

At the beginning of the tax year,Zach's basis for his partnership interest and his amount at risk in the partnership was $30,000.His share of partnership items for the year consisted of tax-exempt interest income of $2,000 and an ordinary loss of $44,000.He also received a distribution from the partnership of $20,000 cash during the year.For the tax year,Zach will report:

• A)A nontaxable distribution of $20,000, an ordinary loss of $10,000, and a suspended loss carryforward of $34,000.
• B)An ordinary loss of $32,000, a suspended loss carryforward of $12,000, and a taxable distribution of $20,000.
• C)A nontaxable distribution of $20,000, an ordinary loss of $12,000, and a suspended loss carryforward of $32,000.
• D)An ordinary loss of $44,000 and a nontaxable distribution of $20,000.

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Definitions:

Work Stress

The response people may have when presented with work demands and pressures that are not matched to their knowledge and abilities and which challenge their ability to cope.

Ayurvedic Herbs

Natural substances used in the traditional Indian system of medicine to promote health and treat diseases.

Allopathic

Pertaining to conventional medical practices, especially in contrast to alternative medicine, focusing on the diagnosis and treatment of diseases through drugs or surgery.

Complementary

Serving to complete or enhance something else, often used to describe treatments or therapies that are used in addition to conventional medicine.