Emma Is a 40% General Partner of JohnsonPartners That Reported

Multiple Choice

Emma is a 40% General Partner of JohnsonPartners that reported a net loss of $50,000 for the year.Emma joined the partnership on January 1 of the current year with a beginning basis of $4,000.During the year, JohnsonPartners took out a bank loan for $25,000.How much of the loss can Emma deduct on her tax return for the year?

A) $0
B) $4,000
C) $14,000
D) $20,000