47. A single taxpayer earns $500,000 of salary income and $20,000 of interest income. The taxpayer is also a partner in a partnership. The taxpayer is a material participant in the partnership. His share of the partnership's loss for the year is $300,000. The taxpayer will report AGI of

A) $520,000.

B) $270,000.

C) $220,000.

D) $250,000.

48. All of the following losses are deductible except

A) decline in value of securities.

B) total worthlessness of securities.

C) abandonment of business property.

D) a net operating loss.

49. Albert owns 100 shares of Purple Inc. which he purchased on December 1 of last year for $10,000. The stock is not Sec. 1244 stock. On July 1 of the current year, Albert receives notice from the bankruptcy court that Purple Inc. has been liquidated, and there are no assets remaining for shareholders. As a result, Albert will have

A) a short-term capital loss of $10,000.

B) a long-term capital loss of $10,000.

C) an ordinary loss of $10,000.

D) no loss allowed.

50. All of the following are true of losses from the sale or worthlessness of small business corporation (Section 1244) stock with the exception of

A) the stock must be owned by an individual or a partnership.

B) the stock must have been issued by a domestic corporation.

C) the stock must have been issued for cash or property other than stock or securities.

D) a single taxpayer may deduct, as ordinary losses, up to a maximum of $100,000 per tax year with the remainder treated as capital losses.