Before considering her share of the current year partnership loss, Roberta has a $6,000 adjusted basis and a $4,500 at-risk basis for her partnership interest. During the current year, Robertas share of passive losses from the partnership is $7,500. Assuming no other information except that Roberta has $100,500 passive income from other sources, how much of the $7,500 loss will she be able to deduct on her tax return?

	a.	a. $6,000 loss
	b.	b. $7,500 loss
	c.	c. $4,500 loss
	d.	d. $10,500 loss
	e.	e. $0

1. George and Helen do business as the GH Partnership, sharing profits and losses equally. George is a material participant in the partnership, and the partnership has no outstanding debt. All parties use the calendar year for tax purposes. On January 1 of the current year, Georges basis in the partnership was $25,000; he made no withdrawals from the partnership during the year. The partnership sustained an operating loss of $90,000 in the current year. Georges personal income tax return for the current year should include:

   	a.	a. An ordinary loss of $45,000
   	b.	b. An ordinary loss of $25,000
   	c.	c. An ordinary loss of $25,000 and a capital loss of $20,000
   	d.	d. An ordinary loss of $40,000 and a capital loss of $5,000
   	e.	e. None of the above

1. Shontelle and Teodoro are equal partners in the S & T Partnership. On January 1 of the current year, each partners adjusted basis in S & T was $40,000. During the current year, S & T borrowed $60,000, for which Shontelle and Teodoro are personally liable. S & T sustained an operating loss of $10,000 for the current year ending December 31. The basis of each partners interest in S & T on January 1 of the next year is:

   	a.	a. $35,000
   	b.	b. $40,000
   	c.	c. $65,000
   	d.	d. $70,000

In computing the ordinary income of a partnership, a deduction is allowed for:

	a.	a. Guaranteed payments to partners
	b.	b. Contributions to recognized charities
	c.	c. Partners personal exemptions
	d.	d. The net operating loss deduction
	e.	e. All of the above can be deducted

Partnerships and S corporations may elect a year that does not end on December 31 if:

	a.	a. A business purpose for the year can be demonstrated.
	b.	b. The entity retains the same year as was used for fiscal year ending in 1987, provided the entity agrees to make required tax payments.
	c.	c. The partnerships or S corporations year results in a deferral of not more than three months income and the entity agrees to make required tax payments.
	d.	d. a and c only
	e.	e. All of the above