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Please help me with part B for Francesca. Required Information [The following information applies to the questions displayed below.] The TimpRiders LP has operated a

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Please help me with part B for Francesca.

Required Information [The following information applies to the questions displayed below.] The TimpRiders LP has operated a motorcycle dealership for a number of years. Lance is the limited partner, Francesca is the general partner, and they share capital and profits equally. Francesca works full-time managing the partnership. Both the partnership and the partners report on a calendar-year basis. At the start of the current year, Lance and Francesca had bases of $10,000 and $3.000, respectively, and the partnership did not carry any debt. During the current year, the partnership reported the following results from operations: Net sales Cost of goods sold Operating expenses Short-term capital loss Tax-exempt interest 51231 gain $ 65e, een $ see, eee $ 160, eee $ 2, Bee $ 2, eee $ 6, eee On the last day of the year, the partnership distributed $3,000 each to Lance and Francesca. a. What outside basis do Lance and Francesca have in their partnership interests at the end of the year? b. How much of their losses are currently not deductible by Lance and Francesca because of the tax-basis limitation? c. To what extent does the passive activity loss limitation apply in restricting their deductible losses for the year? (For all the requirements, negative amounts should be entered with a minus sign. Leave no answer blank. Enter zero If applicable.) Answer is complete but not entirely correct. Lance Francesca Year end basis $ 5,000S 0 Loss limited by tax basis 0 $ 3,000

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