Last year, Ted invested $100,000 for a 50% interest in a partnership in which he was a material participant. The partnership incurred a loss, and Ted's share was $150,000 . Which of the following statements is incorrect?
a. Ted's nondeductible loss of $50,000 can be carried over and used in the future (subject to the at-risk provisions).
b. If Ted has taxable income of $50,000 from the partnership in the current year and no other transactions that affect his at-risk amount, he can use all of the $50,000 loss carried over.
c. Since Ted has only $100,000 of capital at risk, he cannot deduct more than $100,000 against his other income.
d. None of the above is incorrect.
d
RATIONALE: Statements a., b., and c. are all correct.
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All of the following are characteristics that are required for effective responsibility accounting except:
A. motivation. B. centralization. C. accountability. D. None of these answers are correct.
Chu Company provided the following information related to its inventory sales and purchases for December Year 1 and the first quarter of Year 2: Dec. Year 1 Jan. Year 2 Feb. Year 2 Mar. Year 2 (Actual) (Budgeted) (Budgeted) (Budgeted)Cost of goods sold$32,000? $62,000? $82,000? $52,000? Desired ending inventory levels are 32% of the following month's projected cost of goods sold. Budgeted purchases of inventory in February Year 2 would be:
A. $72,400. B. $79,900. C. $61,600. D. $91,120.
Grazia S.p.A, a home furnishing company, has its headquarters in Italy. It has marketing facilities in France, has a manufacturing facility in Japan, and imports fabric from India and China. It sells its products exclusively to high-end customers in the U.K. and Spain.Which of the following is the host country for Grazia S.p.A?
A. The U.K. B. Spain C. Italy D. India E. Japan
Subtype entities may be either exclusive or inclusive
Indicate whether the statement is true or false