Question 22 of 75.

Choose the response that correctly describes an item that will increase a partner's at-risk amount

A)A borrowed amount contributed to a partnership by a partner. When they borrowed the funds, the partner assumed personal responsibility for the loan.

B)The partner's distributive share of charitable contributions made by the partnership.

C)The partner's distributive share of the partnership's Section 179 deduction.

D)Property distributed to the partner by the partnership.

Question 23 of 75.

At the beginning of 2022, Francisco owned a 50% interest in a partnership. During the year, he contributed equipment with a fair market value of $14,000 to the partnership. At the time, his adjusted basis in the equipment was $10,000. Neither Francisco nor the partnership recognized any gain when the equipment was contributed.

How does this contribution affect Francisco's outside basis?

It decreases by $10,000.

It increases by $10,000.

It increases by $14,000.

It is not impacted by the contribution.

Question 24 of 75.

Jesse was the sole proprietor of an unincorporated retail business for many years. However, after receiving an offer he couldn't refuse, he sold all of his business assets in a single transaction on May 20, 2022. The total sales price of $300,000 included $25,000 of inventory.

How should the sale of the inventory be reported on Jesse's 2022 tax return?

Ordinary income on Schedule C.

Capital gain income on Schedule D.

Ordinary gain in Part Il of Form 4797.

Gain from disposition of property in Part Ill of Form 4797.