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