For the tax year, ABC partnership reported a 68,000 ordinary
loss and a 30,000 increase in recourse liabilities for which the
partners are liable. Anne a 50% partner, had an adjusted basis of
20,000 at the beginning of the year. What is Anne's allowable loss
and her adjusted basis in ABC at the end of the year?
1. Allowable loss - 19,000. adjusted basis - 1,000
2. Allowable loss - 20,000. Adjusted basis - 0
3 Allowable loss - 34,000. Adjusted basis - 0
4 Allowable loss - 34,000. Adjusted basos - 1,000
1. Allowable loss - 19,000. adjusted basis - 1,000
2. Allowable loss - 20,000. Adjusted basis - 0
3 Allowable loss - 34,000. Adjusted basis - 0
4 Allowable loss - 34,000. Adjusted basos - 1,000