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John, a limited partner of Candy Apple, LP, is allocated $35,000 of ordinary business loss from the partnership. Before the loss allocation, his tax basis is $25,000 and at-risk amount is $15,000. John also has ordinary business income of $25,000 from Sweet Pea, LP as a general partner and ordinary business income of $8,800 from Red Tomato, as a limited partner. How much of the $35,000 loss from Candy Apple can John deduct currently? Multiple Choice $8,800. $15,000. $26,200. $35,000.

John, a limited partner of Candy Apple, LP, is allocated $35,000 of ordinary business loss from the partnership. Before the loss allocation, his tax basis is $25,000 and at-risk amount is $15,000. John also has ordinary business income of $25,000 from Sweet Pea, LP as a general partner and ordinary business income of $8,800 from Red Tomato, as a limited partner. How much of the $35,000 loss from Candy Apple can John deduct currently? Multiple Choice $8,800. $15,000. $26,200. $35,000.

FINANCIAL ACCOUNTING
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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John, a limited partner of Candy Apple, LP, is allocated $35,000 of ordinary business loss from the partnership. Before the loss allocation, his tax basis is $25,000 and at-risk amount is $15,000. John also has ordinary business income of $25,000 from Sweet Pea, LP as a general partner and ordinary business income of $8,800 from Red Tomato, as a limited partner. How much of the $35,000 loss from Candy Apple can John deduct currently? Multiple Choice $8,800. $15,000. $26,200. $35,000.
Transcribed Image Text:John, a limited partner of Candy Apple, LP, is allocated $35,000 of ordinary business loss from the partnership. Before the loss allocation, his tax basis is $25,000 and at-risk amount is $15,000. John also has ordinary business income of $25,000 from Sweet Pea, LP as a general partner and ordinary business income of $8,800 from Red Tomato, as a limited partner. How much of the $35,000 loss from Candy Apple can John deduct currently? Multiple Choice $8,800. $15,000. $26,200. $35,000.
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