In the current year, ed invests $30,000 in an oil partnership. he has taxable income for the current year of $2,000 from the oil partnership and withdraws $10,000. what is ed’s at-risk amount at the end of the year?

$22,000

Explanation:

The at-risk amount is the total amount that an investor risks losing by taking an investment.

When Ed invests $30,000 in the oil partnership, that becomes his at-risk amount.

Then Ed earns $2,000 as taxable income and withdraws $10,000 from the partnership.

Ed's at-risk amount at the end of the year would be = $30,000 + $2,000 - $10,000 = $22,000

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