Terri Owns a 50 Percent Interest in the TT Partnership

Multiple Choice

Terri owns a 50 percent interest in the TT Partnership.At the beginning of the year, her basis in her partnership interest was $75,000.The partnership reports a $40,000 loss for the year and distributes $4,000 cash to Terri.What is Terri's deductible loss (included in her gross income) as a result of her 50 percent interest in TT?

A) $75,000
B) $51,000
C) $20,000
D) $16,000