$1.$ On June $15$ Eric purchased stock in ABC Corp. $($not small business stock$)$ for $$8,000.$ On January $14$ of the following year the stock became totally worthless. How should Eric treat the loss in the current year when he files his tax return?

Group of answer choices

$$4,000$ short$$term capital loss

$$8,000$ long$$term capital loss

$$8,000$ short$$term capital loss

$$8,000$ ordinary loss under Section $1244$

$2.$ A client invests his funds in a limited partnership and pays $$500,000$ for a $15\%$ stake in the partnership. At the end of the year, a K$1$ comes in the mail. It details his losses as $$120,000.$ This is the client$$s only investment. How much of the loss is suspended under the at$$risk rules?

Group of answer choices

$$0$

$$120,000$

$$380,000$

$$500,000$

$3.$ Bob and Donna have two children, Kate, age $18,$ and Matthew, age $15.$ Both of the children are claimed as their dependents. The adjusted gross income on their jointly filed tax return is $$90,000.$ How much child tax credit can they claim on their tax return $(2022$ and later tax years$)?$

Group of answer choices

$ $600$

$$1,200$

$$1,000$

$$2,000$

$4.$ Arthur is an attorney who owns and participates in a separate small business $($not real estate$)$ during the current year. He has one employee who works part$$time in the business. Which of the following statements is correct?

Group of answer choices

If Arthur participates for $500$ hours and the employee participates for $520$ hours during the year, Arthur qualifies as a material participant.

If Arthur participates for $600$ hours and the employee participates for $1,000$ hours during the year, Arthur qualifies as a material participant.

If Arthur participates for $120$ hours and the employee participates for $125$ hours during the year, Arthur qualifies as a material participant.

If Arthur participates for $95$ hours and the employee participates for $5$ hours during the year, Arthur probably does not qualify as a material participant.