In year 1, Bob acquired a partnership interest for $60,000, and he decided he would material participant in the partnership. He assumed responsibility for $30,000 of the partnerships debt (his share of the partnerships existing liabilities). Write numbers with commas, but no dollar signs (example: 100,000)

a. Bobs at-risk amount is:

b. In year 2, Bobs share of the partnerships income was $35,000, and he withdrew $30,000 from the partnership during the year.

His at-risk amount at the end of year 2 is

c. In year 3, Bobs share of the Partnerships loss is $120,000.

How much of the $120,000 loss can Bob deduct?

What amount of the loss (if any) is suspended?

d. In year 4 Bobs share of the partnerships income is $30,000.

How much of the partnership income must be included in taxable income?