Please answer questions 7 through 10

(numbering continues from Chapter 4 Homework Part 1) 7. Noah purchased a 30% interest in a partnership for $200,000. In 200, the partnership generated $400,000 of taxable income and Noah withdrew $100,000. In 201, the partnership earned $600,000 of taxable income and Noah withdrew $200,000. What is Noah's gross income from the partnership in 20x0 and 20x1? What is his basis in his partnership share at the end of each year? Note: a "withdrawal" is the same thing as a distribution. Also keep in mind that the withdrawals do not reduce Noah's 30% ownership percentage. 8. In the current year, Reed Corporation made a $400,000 interest-free loan to Riley Reed, the corporation's controlling shareholder. Mr. Reed is also the corporation's chief executive officer and receives a salary of $300,000 a year. What are the tax consequences of classifying the loan as a compensation-related loan rather than as a corporation-shareholder loan? 9. Sara made the following interest-free loans during the year. Assume that tax avoidance is not a principal purpose of any of the loans. Assume that the relevant Federal rate is 5% and that the loans were outstanding for the last six months of the year. What are the effects of the imputed interest rules on these transactions? Compute Sara's gross income from each loan. 10. David and Dawn divorced in 2016. As part of the divorce settlement, David transferred stock to Dawn. David purchased the stock for $25,000, and it had a market value of $43,000 on the date of the transfer. Dawn sold the stock for $40,000 a month after receiving it. In addition, David is required to pay Dawn $1,500 a month in alimony. He made five payments to her during the year. What are the tax consequences for David and Dawn regarding these transactions? a. How much gain or loss does David recognize on the transfer of the stock? b. Does David receive a deduction for the $7,500 alimony paid? c. How much income does Dawn have from the $7,500 alimony received? d. When Dawn sells the stock, how much does she report