Q1 Decker has a $1,000 loss from an activity in which he materially participates. He has $500 of basis in the activity and his at risk basis is $300. How much of the $1,000 loss may Decker deduct against ordinary income?

Q2 Hope and Joy formed a partnership by each contributing $3,000. This year, the partnership borrowed $60,000 as a nonrecourse loan. The loan is considered qualified nonrecourse debt. Each partner took a $1,000 distribution this year. What is each partner's at-risk amount at the end of the year?

Which represents the correct order of annual basis adjustments to Scorporation basis? O G. + share of income and gains -nondeductible items - share of loss and deduction items - tax free distributions. O b. + tax free distributions - nondeductible items - share of loss and deduction items + share of income and gains. O c. + share of income and gains - nondeductible items - tax free distributions - share of loss and deduction items. O d. + share of income and gains - tax free distributions - nondeductible items - share of loss and deduction items, + Which of the following statements is correct about Scorporation gains and losses? Oo. Losses exceeding stock basis cannot be deducted against debt basis. O b. Losses and deductions are limited to the shareholder's basis at the end of the corporate year. O a. Nondeductible losses are allowed to be carried forward for 2 years. O d. A distribution in excess of basis is recognized as a loss by the shareholder