Thomas and Miles Are Equal Partners in a Partnership, Which

Multiple Choice

Thomas and Miles are equal partners in a partnership, which uses the calendar year as its tax year. On September 1, this year, Katie contributed $60,000 cash for a one-third interest in the partnership. The partnership reports a $24,000 ordinary loss for the tax year ending on December 31 of this year. The loss allocation to Katie (new partner) is

A) $0.
B) $2,667.
C) $4,000.
D) $8,000.