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Adam purchases a 15% interest in the ABC Partnership for $18,000 on January 1, and begins to materially participate in the partnership's business. The ABC
Adam purchases a 15% interest in the ABC Partnership for $18,000 on January 1, and begins to materially participate in the partnership's business. The ABC Partnership uses the calendar year as its tax year. At the time of the purchase, the ABC Partnership has $1,800 in liabilities, and Adam's share is 15%. During the year, the ABC Partnership incurs $90,000 in losses and its liabilities increase by $3,600. What is Dan's basis in his partnership interest on December 31? Stallings Corporation has $50,000 of taxable income before any charitable contribution deduction. Stallings contributed $20,000 to a qualified charitable organization. Due to the 10% of taxable income limitation on charitable contribution deductions, Stallings' contribution deduction is limited to $5,000. What effect does the charitable contribution have on current and future E&P
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