A. Electing large partnership rules differ from other partnership rules in all of the following areas except 1. partnership income reporting. 2. partnership termination. 3. partnership audits. 4. All of the above are correct. B. On the first day of the partnership's tax year, Karen purchases a 50% interest in a general partnership for $30,000 cash and she materially participates in the operation of the partnership for the entire year. The partnership has $40,000 in recourse liabilities when Karen enters the partnership and the partnership incurs $20,000 of nonrecourse liabilities during the year. Partners share the economic risk of loss from recourse liabilities in the same way they share partnership losses. There is no minimum gain related to the nonrecourse liability. During the year the partnership incurs a $120,000 loss. How much of the loss can Karen report on her tax return for the current year? 1. $30,000. 2. $40,000. 3. $50,000. 4. $60,000. C. Identify which of the following statements is true. 1. A partner