Wayne and Wendy are equal partners in ABC Windows. Wayne is a general partner and Wendy is a limited partner. Each partner invested $20,000 in the company. ABC Windows experienced a loss of $50,000 this year. Which of the following statements regarding this loss is TRUE?
A) Wayne may claim a loss for tax purposes of $25,000 this year.
B) Wendy may claim a loss for tax purposes of $25,000 this year.
C) Wayne may claim a loss for tax purposes of $50,000 this year.
D) Wendy may claim a loss for tax purposes of $50,000 this year.
Correct Answer:
Verified
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