Required information Problem 20-73 (LO 20-6) (Algo) [The following information applies to the questions displayed below.] Alfonso began the year with a tax basis in his partnership interest of $16,000. His share of partnership liabilities at the beginning and end of the year consists of $3,000 of recourse liabilities and $7,000 of nonrecourse liabilities. During the year, he was allocated $31,000 of partnership ordinary business loss. Alfonso does not materially participate in this partnership, and he has $2,000 of passive income from other sources. Problem 20-73 Part b (Algo) b. How much of Alfonso's loss is limited by his at-risk amount? Loss limited by his at-risk amount
Required information Problem 20-73 (LO 20-6) (Algo) [The following information applies to the questions displayed below.] Alfonso began the year with a tax basis in his partnership interest of $16,000. His share of partnership liabilities at the beginning and end of the year consists of $3,000 of recourse liabilities and $7,000 of nonrecourse liabilities. During the year, he was allocated $31,000 of partnership ordinary business loss. Alfonso does not materially participate in this partnership, and he has $2,000 of passive income from other sources. Problem 20-73 Part b (Algo) b. How much of Alfonso's loss is limited by his at-risk amount? Loss limited by his at-risk amount
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
Problem 20-73 (LO 20-6) (Algo)
[The following information applies to the questions displayed below.]
Alfonso began the year with a tax basis in his partnership interest of $16,000. His share of partnership liabilities at the
beginning and end of the year consists of $3,000 of recourse liabilities and $7,000 of nonrecourse liabilities. During the
year, he was allocated $31,000 of partnership ordinary business loss. Alfonso does not materially participate in this
partnership, and he has $2,000 of passive income from other sources.
Problem 20-73 Part b (Algo)
b. How much of Alfonso's loss is limited by his at-risk amount?
Loss limited by his at-risk amount](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F39599c21-da60-4c65-a894-5d7323382a52%2F552b34a0-8729-4355-be37-5065332a58d6%2F4nybmp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
Problem 20-73 (LO 20-6) (Algo)
[The following information applies to the questions displayed below.]
Alfonso began the year with a tax basis in his partnership interest of $16,000. His share of partnership liabilities at the
beginning and end of the year consists of $3,000 of recourse liabilities and $7,000 of nonrecourse liabilities. During the
year, he was allocated $31,000 of partnership ordinary business loss. Alfonso does not materially participate in this
partnership, and he has $2,000 of passive income from other sources.
Problem 20-73 Part b (Algo)
b. How much of Alfonso's loss is limited by his at-risk amount?
Loss limited by his at-risk amount
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