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In 2019, Matthew contributed equipment with an adjusted basis of $40,000 and an FMV of $36,000 to Construction Limited Partnership (CLP) in return for a 3% limited partnership interest.
Matthew's share of CLP income and losses for the year were as follows:
Interest $1,000
Dividends 600
Capital gains 1,800
Ordinary loss (8,650)
CLP had no liabilities.
Question 1: What are Matthew's initial basis, allowed losses, and ending at-risk amount?
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