Harold Has a 50% Interest in a General Partnership That

Multiple Choice

Harold has a 50% interest in a general partnership that has a $14,000 loss for the year.He materially participates in the partnership, his basis in the partnership is $10,000 at the beginning of the year.He also has salary from other employment of $46,200.If he is single and claims the standard deduction, what are his taxable income and tax liability, respectively, in 2019?

A) $27,000; $3,046
B) $39,000; $4,510
C) $46,000; $5,963
D) None; $0