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:

Output Standards

The pre-determined levels of performance or production that a process or system is expected to achieve.

Input Standards

Benchmarks or criteria used to measure the quantity, quality, or timeliness of resources used in a production process or project.

Critical Path

In project management, it is the longest sequence of tasks that must be finished on time for the whole project to be completed on schedule.

Quickest Time

The shortest duration within which an action can be completed or a goal can be achieved.