Lines 17a through 17f of Schedule K must be completed to report Alternative Minimum Tax (AMT) items. Which one of the following items correctly identifies an AMT item reported on lines 17a through 17f of Schedule K?

A. Excess of 2000B depreciation over 1500B depreciation for personal property.
B. Investment interest expense.
C. Cash or property distributions to a partner.

Which of the following statements is correct about the preparation of Form 4797?

A. Generally, gains on sales of trade or business assets are reported in the §1231 (Part I) section of page 1.
B. Generally, losses on sales of trade or business assets are reported in the Ordinary (Part II) section of page 1.
C. Generally, gains on sales of trade or business assets in which depreciation recapture is required are reported in the Gain (Part III) section of page 2.

Allocations of losses, deductions, or nondeductible expenditures attributable to LLC nonrecourse liabilities cannot have economic effect because the creditor alone bears any economic burden that corresponds to those allocations. Therefore, nonrecourse deductions must be allocated in accordance with:

A. The tax basis of members' interest in an LLC.
B. The members' capital accounts in the LLC.
C. The members' interests in the LLC.

Which one of the following statements describes the application of the at-risk rules with respect to different activities?

A. If an LLC conducts more than one activity, each of which is the same type, then each member cannot aggregate such activities together as a single activity.
B. Losses from one activity cannot be used to offset the income from another activity which is not the same type but can be used to offset the income from the same activity.
C. A future promise to make a contribution to the activity creates an amount at-risk.