At the beginning of the tax year, Zach's basis for his partnership interest and his amount at risk in the partnership was $30,000. His share of partnership items for the year consisted of tax-exempt interest income of $2,000 and an ordinary loss of $44,000. He also received a distribution of $20,000 cash from the partnership during the year. He is an active general partner and has no passive income or business losses from other sources. For the tax year, Zach will report:

The correct answer is Ordinary loss = $12,000  and  Suspended loss carry forward = $32,000.

Explanation:

According to the scenario, the computation of given data are as follows:

As $20,000 and $2,000 are tax exempt interest income,

So, it can reduce Zach's basis in his partnership interest.

So, Ordinary loss =  $30, 000 + $2,000 - $20,000 = $12,000

Suspended loss carry forward = $44,000 - $12,000 = $32,000

Hence, Zach will report the following data

Ordinary loss = $12,000

Suspended loss carry forward = $32,000

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

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