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Zelda owns a 60 percent general interest in YZ Partnership. At the beginning of 2020, the adjusted basis in her YZ interest was $95,000. For

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Zelda owns a 60 percent general interest in YZ Partnership. At the beginning of 2020, the adjusted basis in her YZ interest was $95,000. For 2020,YZ generated a $210,000 business loss, earned $14,600 dividend and interest income on its investments, and recognized a $6,200 capital gain. YZ made no distributions to it: partners and had no debt. Required: a. How much of her share of YZ's loss can Zelda deduct on her 2020 return? Assume the excess business loss limitation does not apply. b. Compute Zelda's adjusted basis in her YZ interest at the end of 2020. c. If Zelda recelved a $5,000 cash distribution from YZ during 2020, how much of her share of YZ's loss can she deduct on her 2020 return

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