2. Mark and John form Reid and Masselli, LLP, (R&M), a partnership specializing in tax services. Both Mark and John are calendar-year taxpayers. However, they would like for R&M to have a year-end of 4/30. Is this possible? Why or why not? (5 points)

3. Kelly is a partner in the JK partnership. She does not materially participate. Her adjusted outside basis in the partnership is $75,000. Of this, $25,000 comes from nonrecourse debt. Her share of partnership losses from JK is $60,000, and she has passive income of $25,000 from other activities. What is the maximum amount of the losses from JK that she is able to deduct? (5 points)