Alfonso began the year with a tax basis in his partnership interest of $30,000. His share of partnership debt at the beginning and end of the year consists of $4,000 of recourse debt and $6,000 of nonrecourse debt. During the year, he was allocated $40,000 of partnership ordinary business loss. Alfonso does not materially participate in this partnership and he has $1,000 of passive income from other sources. a. How much of Alfonso’s loss is limited by the passive activity loss rules?

Mike and Ken were two partners sharing profits and losses in the ratio 4:3. Ken was in need offunds so he took a loan of Rs.50, 000 from the firm at an agreed rate of interest being 10% p.a. IfInterest is charged on loan to the partner it will be:(a) Debited to Profit and Loss A/c(b) Credited to Profit and Loss A/c(c) Debited to Profit and Loss Appropriation A/c(d) Credited to Profit and Loss Appropriation A/c

Assume the original facts and that Farewell is deemed to be active participant in Sierra Vista and he also $280,000 loss from a sole proprietorship,determine how much total trade or business loss farewell will deduct on his return in year 1

Cervantes, Chavez, Cabindol and Cortes are partners in the 4C Partnership with 10%, 20%, 30% and 40% participation in partnership profits and losses respectively.  During 2019, Cabindol contributed property valued at P70,000 to the partnership and withdrew P220,000 (charged against his capital account).  If Cabindol’s capital account had a net decrease of P90,000 during the calendar year 2019.  What was the share of Cortes in the net profit (loss) of the 4C Partnership?

Jason Walker has invested $800 000 in a privately held family company. The company does not do well and must declare bankruptcy. What amount does Jason stand to lose? Group of answer choices Up to his total investment of $800 000 $400 000 The $800 000 plus any personal assets the creditors demand Zero

Juan, Pedro, and Maria are partners in JPM & Company. Juan and Pedro are capitalist partners, while Maria is an industrial partner. Juan and Pedro contributed Php10,000 each. A contractual liability of Php26,000 was incurred by the partnership in favor of Joseph. Joseph filed a case against JPM & Company and the individual partners. At that time, the partnership had capital assets of Php20,000 as contributed by the capitalist partners.a. If the contractual liability has been proven, how will the partnership and the partners be made to pay the contractual obligation in favor of Joseph? Provide the exact amounts; Max sentences: 6 (20 pts.)b. What will be Maria’s liability and recourse, if any? Max sentences: 3 (10 pts.)Answer each question separately.