1. Thomas and Miles are equal partners in a​ partnership, which uses the calendar year as its tax year. On September​ 1, this​ year, Katie contributed​ $60,000 cash for a​ one-third interest in the partnership. The partnership reports a​ $24,000 ordinary loss for the tax year ending on December 31 of this year. The loss allocation to Katie​ (new partner) is
a. ​$0.
b. ​$2,667.
c. ​$4,000.
d. ​$8,000.
2. A corporation has the following capital gains and losses during the current​ year: ​LTCG: $25,000 ​LTCL: ​15,000 ​STCG: 8,000 ​STCL: 4,000 The tax result to the corporation is
a. $10,000 NLTCG included in gross income and taxed at ordinary​ rates; $4,000 NSTCG included in gross income and taxed at reduced rates.
b. ​$10,000 NLTCG is included in gross income and taxed at reduced​ rates; and​ $4,000 NSTCG included in gross income and taxed at ordinary rates.
c. $14,000 included in gross income and taxed at reduced rates.
d. $14,000 included in gross income and taxed at ordinary rates.
3. Stephanie owns a​ 25% interest in a qualifying S corporation.​ Stephanie's basis in the stock was​ $40,000 at the end of the year after adjustments are made for capital contributions and distributions​ (but not operating​ results). Stephanie also loaned the S corporation​ $10,000 this year. The S corporation incurred a​ $240,000 ordinary loss this year. Assume that next year the S​ corporation's ordinary income is​ $160,000. ​ Stephanie's basis in her stock at the end of next year is
a. $10,000
b. $20,000
c. $30,000
d. ​$40,000