Perry Is a Partner in a Calendar Year Partnership $\quad$ $\quad$

Perry is a partner in a calendar year partnership. His Schedule K-1 for the current tax year showed the following:
Ordinary business loss $\quad$$\quad$$\quad$$\quad$ $ (20,000 )
Short-term capital gain $\quad$$\quad$$\quad$$\quad$$\quad$ 2,100
Dividend income $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ 1,600
Cash distribution $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ 5,800
Perry's tax basis in his partnership interest at the beginning of the year was $15,400. How much of the ordinary loss may he deduct on his Form 1040? Assume the excess business loss limitation does not apply.

A) $11,700
B) $14,000
C) $10,200
D) $13,300

Correct Answer:

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