Stuart owns a 20% interest in a partnership not involved in real estate)in which his at-risk amount was $18,000 at the beginning of the year.The partnership produces a $50,000 loss for the year.What is Stuart's at-risk amount at the end of the year?
A)$32,000).
B)$0.
C)$10,000.
D)$8,000.

Question

Quizplus · Accepted Answer

Stuart's share of the partnership loss is 20% of $50,000, which is $10,000. His at-risk amount at the end of the year is $18,000 (beginning at-risk amount) minus $10,000 (his share of the loss), resulting in $8,000.

Stuart Owns a 20% Interest in a Partnership Not Involved