On the first day of the current tax year, Michael's basis for his partnership interest was $85,000. His schedule K-1 from the partnership reflected the following items for the current year: - Share of partnership ordinary loss $100,000 - Share of dividend income $6,000 a) What effect do these items have on Michael's taxable income? b) What happens to the amount of the loss, if any, that cannot be deducted in the current tax year?

B Corporation, a calendar year-end, accrual basis taxpayer, is owned 75 percent by Bonnie, a cash basis taxpayer. On December 31,2019, the corporation accrues interest of $4,000 on a loan from Bonnie and also accrues a $15,000 bonus to Bonnie. The bonus is paid to Bonnie on February 1,2020; the interest is not paid until 2021 . How much can B Corporation deduct on its 2019 tax return for these two expenses? $0 $4,000 $15,000 $19,000 $12,000

During 2019, Inez (a single taxpayer) had the following transactions involving capital assets: a. If Inez has taxable income of 158,000, how much income tax results? b. If Inez has taxable income of 35,000, how much income tax results?