32- Allison is a 40% partner in the BAM Partnership. At the beginning of the tax year, her basis in the partnership interest was $100,000, including her share of partnership liabilities. During the current year, BAM reported an ordinary loss of $60,000 (before the following payments to the partners). In addition, BAM made an ordinary distribution of $8,000 to Allison and paid partner Brian a $20,000 consulting fee. At the end of the year, Allison's share of partnership liabilities decreased by $10,000. Assuming loss limitation rules do not apply, Allison's basis in the partnership interest at the end of the year is:

a.$50,000.

b.$2,000.

c.$70,000.

d.$58,000.

33- An S corporation must possess which of the following characteristics?

a.Corporation organized in the United States.

b.Only one class of stock.

c.Not more than 100 shareholders.

d.All of these choices are correct.