Albert, Berry, and Collins formed ABC Partnership in the current year Collins, a limited partner, contributed $20,000 in cash to the partnership and also pledged $10,000 of personal property as collateral to meet any partnership debts that may arise Collins 's share of the current ABC Partnership l...

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Albert, Berry, and Collins formed ABC Partnership in the current year. Collins, a limited partner, contributed $20,000

Question:

Albert, Berry, and Collins formed ABC in the current year. Collins, a limited partner, contributed $20,000 in cash to the and also pledged $10,000 of personal property as collateral to meet any debts that may arise. Collins's share of the current ABC loss is $50,000. How much of the loss is deductible by Collins under the at-risk rules?
a. $0
b. $10,000
c. $20,000
d. $30,000
Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...