Question
1. Business equipment was sold for $12,000. Its cost was $15,000 and accumulated depreciation was $8,500. How much and what character is the gain or
1. Business equipment was sold for $12,000. Its cost was $15,000 and accumulated depreciation was $8,500. How much and what character is the gain or loss?
Group of answer choices
a. $5,500 Section 1231 gain
b. $3,000 Section 1231 loss
c. $5,500 ordinary gain
d. $8,500 ordinary gain
2. Partnership losses flow through to the partners. Which of the following is a limitation to the deductibility of these losses at the partner level?
Group of answer choices
a. Outside basis limitation
b. At-risk basis limitation
c. Passive losses limitation
d. All of the above are limitations
3. Separately-stated items of income, deductions, tax credits, etc. from flow-through entities are separately stated because they are subject to floor and ceiling limitations, special tax rates, etc. at the owners' level.
Group of answer choices
True
False
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