please see attachment for the practice quiz.Please answer questions in the work document provided

1. A sole proprietorship: (Points : 1) must be owned by an individual. provides basic liability protection for the owner. must use the cash method of accounting. can pay the owner a salary. 0 1487495142 MultipleChoice 1 Question 2. 2. Sam has $80,000 of net income from his sole proprietorship in 2016. What is his deduction for AGI for selfemployment taxes? (Points : 1) $9,826 $6,120 $5,652 $4,913 0 1487495143 MultipleChoice 2 Question 3. 3. Which of the following is not a characteristic of sole proprietorships? (Points : 1) Owners pay selfemployment taxes Formation is always taxfree Distributions of entity income are taxfree Loss is recognized on liquidation 0 1487495144 MultipleChoice 3 Question 4. 4. Manuel purchased a 30% interest in MAC general partnership for $40,000 cash and materially participated in the partnership for the entire year. The partnership had $50,000 in liabilities when Manuel purchased his interest and the liabilities increased $10,000 during the year. If the partnership incurred a $300,000 loss this year, how much of this loss can Manuel deduct? (Points : 1) $0 $40,000 $58,000 $65,000 0 1487495145 MultipleChoice 4 Question 5. 5. Samantha and Ashley form the MAS General Partnership. Samantha contributed $20,000 cash in exchange for her 50 percent partnership interest. During the first year of partnership operations, the partnership reported net taxable income of $10,000, Samantha withdrew $8,000 cash from the partnership, and the partnership took out an $18,000 loan on the last day of the year. Samantha's adjusted basis for her partnership interest at year end is: (Points : 1) $38,000 $30,000 $26,000 $17,000 0 1487495146 MultipleChoice 5 Question 6. 6. An S election terminates (Points : 1) when a shareholder dies. when there is a nonresident alien shareholder. when the S corporation invests in a C corporation. when an S corporation has excess passive income 0 1487495147 MultipleChoice 6 Question 7. 7. At the beginning of the year, Jill's basis in her 40 percent limited partnership interest was $10,000. During the year, the partnership reported a loss of $90,000 and the partnership obtained a $40,000 recourse loan on some machinery. How much loss may Jill deduct if she has $40,000 of passive income? (Points : 1) $10,000 $16,000 $26,000 $36,000 0 1487495148 MultipleChoice 7 Question 8. 8. Victoria is a 50 percent partner in VR Partners. Her partnership tax basis is $28,000 on December 31 when she receives a current distribution of property with a partnership tax basis $25,000 and a fair market value of $46,000. What is Victoria's tax basis in the distributed property? (Points : 1) $14,000 $25,000 $28,000 $46,000 0 1487495149 MultipleChoice 8 Question 9. 9. Corbin has a $15,000 basis in his 50 percent ownership in an S corporation and lent the corporation $5,000 last year. The corporation has $30,000 of other debt. This year the corporation reported a $100,000 loss. How much of this loss may Corbin deduct? (Points : 1) $15,000 $20,000 $35,000 $50,000 0 1487495150 MultipleChoice 9 Question 10. 10. Kevin and Jennifer are 60% and 40% shareholders, respectively, in an S corporation. If the corporation reports $10,000 of nonseparately stated income and $2,000 of capital gain, how much is allocated to Jennifer? (Points : 1) $4,000 income only $4,000 income and $2,000 of capital gain $4,000 income and $800 of capital gain $6,000 income and $2,000 of capital gain 0 1487495151 MultipleChoice 10 Question 11. 11. Jonathan's basis in his S corporation stock is $4,000 at the end of the year before the corporation reports his $1,500 share of income and distributes $2,500 cash to him. What is his basis at the beginning of the following tax year? (Points : 1) $0 $2,500 $3,000 $4,000 0 1487495153 MultipleChoice 11 Question 12. 12. Bill has a $15,000 passive loss, a $12,000 passive gain, $20,000 of active income, and a $14,000 active loss. What is Bill's current year net taxable income or loss? (Points : 1) $20,000 income $6,000 income $3,000 income $0 0 1487495155 MultipleChoice 12 Question 13. 13. Nicole, a partner in NAB Partners, has a tax basis in her partnership interest of $47,000 when she completely liquidates her interest in the partnership. Nicole receives a distribution of $20,000 cash and Section 1231 property with a tax basis to the partnership of $18,000 and a fair market value of $12,000. What is Nicole's recognized tax loss on the liquidating distribution? (Points : 1) $0 ($9,000) ($15,000) ($27,000) 0 1487495156 MultipleChoice 13 Question 14. 14. Amber has a tax basis of $67,000 in her partnership interest in Lightfoot Partnership, which consists of her $27,000 net contribution to partnership capital and her $40,000 share of partnership debt. Amber receives a distribution of land (a capital asset) with a tax basis of $39,000 and a fair market value of $106,000 in complete liquidation of her partnership interest. The property is not encumbered by any of the partnership's liabilities. What is Amber's tax basis for the distributed property? (Points : 1) $27,000 $39,000 $67,000 $106,000 0 1487495157 MultipleChoice 14 Question 15. 15. Juan's interest in the Gonzalez Partnership is liquidated when his basis in the interest is $30,000. He receives a liquidating distribution of $20,000 cash and inventory with a basis of $8,000 and a fair market value of $30,000. Juan will recognize: (Points : 1) No gain or loss $2,000 loss $10,000 loss $20,000 gain