How much loss allocated to him by Hoop

Assignment Help Financial Accounting
Reference no: EM133072725

Question - Hoop is organized as an LLC taxed as a partnership. Fifty percent of Hoop's loss is allocated to Damarcus. Damarcus works full time for Hoop (he is not considered to be a passive investor in Hoop). Damarcus has a $70,000 basis in his Hoop ownership interest, and he also has a $70,000 at-risk amount in his investment in Hoop. Damarcus does not report income or loss from any other business activity investments. How much of the $50,000 loss allocated to him by Hoop is Damarcus allowed to deduct this year?

a. 50,000

b. 0

c. 70,000

d. 20,000

Reference no: EM133072725

Questions Cloud

Underlying investments trade on the market : Which one of the following Alternative Investments is least affected by valuation issues since the market prices of this underlying investments trade on the mar
Discuss the different treatment from GAAP and IFRS : Discuss the different treatment from GAAP and IFRS. How is treatment from IFRS different from GAAP in this situation
Which project is financially acceptable : Assume you are the chief financial officer at Lehman Memorial Hospital. The CEO has asked you to analyze two proposed capital investment Project X and project Y
Marine ecosystem and significant : Choose marine invertebrate to research, reporting on species diversity, anatomical features, habitat, behavior, role in the marine ecosystem and significant
How much loss allocated to him by Hoop : Damarcus does not report income or loss from any other business activity investments. How much of the $50,000 loss allocated to him by Hoop
Option-decision-tree analysis : The Karns Oil Company is deciding whether to drill for oil on a tract of land that the company owns. The company estimates the project would cost $12 million to
Morbidity and mortality rates of population : Define and differentiate between morbidity and mortality rates of a population. Why are these rates important?
What is the maximum initial cost the company : What is the maximum initial cost the company would be willing to pay for the project?
Desire a combined return : You have $10,000 to invest in these two stocks. How much should you invest in Stock L if you desire a combined return from the two stocks of 11 percent?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Estimate the amount of variable price

A recent newspaper article describing no-frills fitness centers indicated that a Snap Fitness site might require only 300 members to break even. Using the information provided above, and your knowledge of CVP analysis, estimate the amount of vari..

  Compute the companys income for the month of september

Rank the company's fiscal quarters from most profitable to least profitable. Compute the company's income for the month of September. Compute the company's net income (or loss) for the first two months of third quarter.

  What is annual payment sam must make to pay back his friend

Sam's friend would like to be reimbursed for the time value of money at a 10% annual rate. What is the annual payment Sam must make to pay back his friend?

  Assume the bond is redeemed for face value

Joe is considering purchasing a ten year bond which has a face value of $10,000, with a bond rate of 10% with bond premiums paid quarterly. The bond has a remaining life of four years. The seller is asking $9250 for the bond and Joe has set a persona..

  Compute Mr Coleman income tax

Mr. Coleman, an unmarried individual, has the following income items: Interest income $23,700. Compute Mr Coleman income tax

  Calculate the present value of the firm tax saving due

Value the present value of a firm’s tax saving due to new debt that they will add for an add on project that will last for three years. The project will add debt today of 75 million and they will reduce debt on a fixed schedule to 50 million in year ..

  What is the present worth of future pot of gold

Sounds great! However if current interest rates suggested for discounting are 15 percent what is the present worth of his future "pot of gold"?

  Which would cause average inventory holdings to decrease

Which would cause average inventory holdings to decrease, other things constant? The carrying cost of an item decreases (as a percent of purchase price)

  Portion earning a simple interest rate

Jo invested $63,000. A portion earning a simple interest rate of 5% per year and the rest earning a rate of 7% per year. After one year the total interest earned on these investments was 3890 dollars. How much money did he invest at each rate?

  Is leased equipment considered fixed asset on balance sheet

Is leased equipment considered a fixed asset on balance sheet? If I only have leased equipment and employees, is it possible for my business to have no fixed as

  What net effect do the entries have on stockholders equity

What net effect do these entries have on stockholders' equity? Sheffield Corp. recorded journal entries for the declaration of $246500 of dividends.

  Calculate the cost of ending inventory using periodic FIFO

During the month of March purchased an additional 13,000 units at $19 each. Calculate the cost of ending inventory using periodic FIFO

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd