Thomas and Miles are equal partners in a partnership, which uses the calendar year as its tax year. On September 1, this year, Katie contributed $60,000 cash for a one-third interest in the partnership. The partnership reports a $24,000 ordinary loss for the tax year ending on December 31 of this year. The loss allocation to Katie (new partner) is

A. $0. B. $2,667. C. $4,000. D.$8,000.

A corporation has the following capital gains and losses during the current year: LTCG: $25,000 LTCL: 15,000 STCG: 8,000 STCL: 4,000 The tax result to the corporation is A. $10,000 NLTCG included in gross income and taxed at ordinary rates; $4,000 NSTCG included in gross income and taxed at reduced rates. B. $10,000 NLTCG is included in gross income and taxed at reduced rates; and $4,000 NSTCG included in gross income and taxed at ordinary rates. C. $14,000 included in gross income and taxed at reduced rates. D.$14,000 included in gross income and taxed at ordinary rates.

Stephanie owns a 25% interest in a qualifying S corporation. Stephanie's basis in the stock was $40,000 at the end of the year after adjustments are made for capital contributions and distributions (but not operating results). Stephanie also loaned the S corporation $10,000 this year. The S corporation incurred a $240,000 ordinary loss this year. Assume that next year the S corporation's ordinary income is $160,000. Stephanie's basis in her stock at the end of next year is A.$10,000. B.$20,000. C. $30,000. D. $40,000.

Tara transfers land with a $690,000 adjusted basis and a $700,000 FMV to a corporation in a Sec. 351 transfer. Immediately after the transfer, Tara owns 100% of the corporationlong dashstock with a FMV of $615,000. In addition, $85,000 of liabilities are assumed by the corporation with respect to the transfer. No other property is transferred. Tara's recognized gain on the transfer is A. $15,000. B. $0. C. $5,000. D. $10,000.

Jenkins Corporation has the following income and expense items during the current year: Net loss from operations (before dividend income) ($ 25,000) Dividends from 25% owned corporations 150,000 The allowed dividends-received deduction is A. $125,000. B. $100,000. C. $150,000. D. $120,000.