In 2023, Joanne invested $110,000 for a 20% interest in a limited liability company (LLC) in which she is a material participant. The LLC reported losses of $375,000 in 2023 and $250,000 in 2024. Joanne's share of the LLC's losses was $75,000 in 2023 and $50,000 in 2024. How much of these losses can Joanne deduct? a. $75,000 in 2023; $50,000 in 2024. b. $75,000 in 2023; $35,000 in 2024. $0 in 2023; $0 in 2024. d. $75,000 in 2023; $0 in 2024. C.

In 2023, Joanne invested $110,000 for a 20% interest in a limited liability company (LLC) in which she is a material participant. The LLC reported losses of $375,000 in 2023 and $250,000 in 2024. Joanne's share of the LLC's losses was $75,000 in 2023 and $50,000 in 2024. How much of these losses can Joanne deduct? a. $75,000 in 2023; $50,000 in 2024. b. $75,000 in 2023; $35,000 in 2024. $0 in 2023; $0 in 2024. d. $75,000 in 2023; $0 in 2024. C.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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