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lidiya [134]
2 years ago
6

Sue invested $12,000 in the ABC Limited Partnership and received a 10 percent interest in the partnership. The partnership had $

34,000 of qualified nonrecourse debt and $34,000 of debt she is not responsible to repay because she is a limited partner. Sue is allocated a 10 percent share of both types of debt resulting in a tax basis of $18,800 and an at risk amount of $15,400. During the year, ABC LP generated a ($97,000) loss. How much of Sue's loss is disallowed due to her tax basis or at-risk amount?
Zero; all of her loss is allowed to be deducted.


$3,400 disallowed because of her at-risk amount


$4,800 disallowed because of her tax basis


$6,800 disallowed because of her tax basis


$6,800 disallowed because of her at-risk amount
Business
1 answer:
FrozenT [24]2 years ago
4 0

Answer:

Option (B) is correct.

Explanation:

Invested amount = $12,000

Interest received in partnership = 10%

qualified non-recourse debt in partnership = $34,000

Loss allowed = $15,400 (At risk amount)

Tax basis = $18,800

Disallowed loss = Loss allocation - Risk amount

                          = $18,800 - $15,400

                            = $ 3,400

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Brad, an employee for a sports marketing firm, feels he has been treated unfairly by the organization. He helped three other emp
lubasha [3.4K]

Answer:

Brad would likely to react by reducing the efforts on future projects.

Explanation:

In accordance with the equity theory, it states that if an employee feels or perceive inequity, then they will try to create equitable exchanges of their rewards and their efforts. The common reaction in this situation would be is to reduce the efforts on further or future project.

6 0
3 years ago
Michone lost her job and ended up deep in debt after she was arrested for causing a car accident while she was drinking and driv
statuscvo [17]

Answer:

Michone's creditors (listed in order of priority):

  1. bank = $500,000 mortgage (secured loan)
  2. child support = $5,000 (priority class of unsecured creditors)
  3. legal fees = $4,000 (second class of unsecured creditors)
  4. State government* = property taxes for $8,000 (eighth class of unsecured creditors, but property taxes are always collected after a property is sold either by foreclosure or by court order). Even if the new buyer didn't know anything about the delinquent property taxes, he/she is responsible for paying them after the sale is made and it cannot be avoided.
  5. car accident victim = $40,000 (tenth class of unsecured creditor)

*Generally taxes owed are a lower class of priority unsecured creditors, but taxes never disappear. In this case, the property taxes are going to be paid by whoever bought the house or the bank in case the house was foreclosed. Michone will not pay them, but someone else will.

Assuming that Michone only had $10,000 left after selling the house (both property taxes and mortgage are paid for), she will need to pay child support first. Child support and alimony payments always have the top priority.

Then with the remaining $5,000 administrative and legal fees will be paid, meaning that the attorney fees will be paid first. The car accident victim will receive only $1,000.

3 0
3 years ago
Jeffery and Cassie, who are married with modified AGI of $90,000, are sending their son to his first year of college. Their tota
Nezavi [6.7K]

Answer: B. $2,500

Explanation:

The American opportunity tax credit (AOTC) is a tax credit benefit for parents and Guardians to paying tuition on Qualified students.

A maximum of $2,500 in credit can be acquired per eligible student and to qualify for this maximum, a married couple filing together must have a Modified Adjusted Gross Income (MAGI) of less than $160,000.

With a modified AGI of $90,000, Jeffery and Cassie are below the threshold and qualify for the full figure.

3 0
3 years ago
Plastic and steel are substitutes in the production of body panels for certain automobiles. If the price of plastic increases, w
Neporo4naja [7]

Answer:

The demand curve for steel to shift to the right

Explanation:

The question isn't complete. The full question can be found: https://www.chegg.com/homework-help/questions-and-answers/3-plastic-steel-substitutes-production-body-panels-certain-automobiles-price-plastic-incre-q31436687

Substitutes goods are goods that can be used in place of one another. If the price of plastic increases, consumers shift to steel, its demand increases and the supply curve shifts to the right.

I hope my answer helps you

4 0
2 years ago
J. Pitner Clothing is a medium-size specialty men's and women's clothing store in a market with many other specialty stores, dep
rjkz [21]

Answer: True - Monopolistic competition

Explanation:

The monopolistic competition is one of the type of imperfect competition in which the various types of industries selling the products and the services that is basically differentiated from others.

In the monopolistic competitors, the different types of decision taken by an organizations are not directly affecting the other competitors in the market.

 According to the question, the J. Pitner's is basically refers to the monopolistic competition in the given competitive environment as it helps in establishing the reputation by offering the various types of high quality services.        

 Therefore, Monopolistic competition is the correct answer.

5 0
3 years ago
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