Priya Is a Partner in a Partnership

Multiple Choice

Priya is a partner in a partnership.The partnership has incurred a loss for the year.Priya's ability to recognize the loss will be tested in the following order:

A) (1) basis limitations,(2) excess business loss limitations,(3) passive loss limitations.
B) (1) basis limitations,(2) passive loss limitations,(3) excess business loss limitations.
C) (1) passive loss limitations,(2) basis limitations,(3) excess business loss limitations.
D) (1) excess business loss limitations,(2) basis limitations,(3) passive loss limitations.