Reference no: EM132736552

Question: 1. Lilly owns a 30% interest in TW Partnership. Lucinda, Lilly's mother, owns a 10% interest, and Caleb, Lilly's cousin, owns a 15% interest in the partnership. During the current year, Lilly sold a parcel of land with a $60,000 adjusted basis to the pa nership for $45,000. What amount of loss can Lilly recognize as a result of the sale?

2. ABC is a calendar-year partnership with three partners, A, B, and C. Under the partnership agreement, profits and losses were to be shared in proportion to their contributions. As of January 1, this was 50% for A, 25% for B, and 25% for C. On July 1, B and C each contributed additional amounts so that their new profit- and loss-sharing ratios were 30% for A, 35% for B, and 35% for C. For the tax year ended December 31, the partnership had a loss of $2,000. This loss was sustained in substantially equal amounts over the course of the partnership's tax year. What is A's distributive share of the partnership loss?