Order Direct Participation Programs Discussion

Order Direct Participation Programs Discussion
Order Direct Participation Programs Discussion
A limited partner of an oil and gas DPP signs a recourse loan on behalf of
the partnership. If the partnership defaults on the loan, what is this limited
partner’s position with regard to the loan?
(A) Creditors can go after the assets of the general manager of the
partnership.
(B) Creditors can go after the assets of the limited partner, who signed
the recourse loan, to help repay the loan.
(C) Creditors are last in line to collect on the partnership’s assets.
(D) None of the above
Which of the following statements is true with regard to modified
accelerated depreciation on equipment as compared with straight line
depreciation?
(A) It provides for equal write-offs each year over the life of the
equipment.
(B) It provides for greater write-offs in the early years of equipment.
(C) It provides for a flexible depreciation schedule for the life of the
equipment.
(D ~~ It provides for greater write-offs in the later years of the equipment.
Direct Participation Programs 29
393. An investor with a tax basis of $20,000 in a limited partnership receives
394.
395.
396.
Order Direct Participation Programs Discussion
a year-end statement showing a cash distribution of $15,000 and a loss of $6,000. How much of the loss can this limited partner use to offset his
or her ordinary income?
(A) $5,000
(B) $6,000
(C) $9,000
(D) $15,000
Which of the following is NOT a conflict of interest for a general partner
in a limited partnership?
(A) Buying personal assets and then selling them to the limited
partnership
(B) ‘Taking out personal loans from the partnership
(C) Accepting money for agreeing not to compete with the limited
partnership
(D) Acting as an agent for the partnership
What is a limited partner’s maximum potential loss if he or she invested
$15,000 in a DPP and personally signed a recourse loan for $20,000?
(A) $15,000
(B) $20,000
(C) $35,000
(D) None of the above
What is a limited partner’s cost basis if the partner signs a recourse loan for
$10,000 for the partnership and invests $14,000 in the partnership?
(A) $10,000 (B) $14,000
(C) $24,000
(D) None of the above
397. Which of the following is the most important factor in choosing a DPP?
(A) Savings
(B) Leverage
(C) Economic viability
(D) Management
100
398.
399.
400.
401.
402.
McGraw-Hill’s 500 Series 7 Exam Questions to Know by Test Day
Which of the following describes a general partner of a DPP?
I. Has limited liability
II. Has unlimited liability
III. Can share in the profits
IV. Manages the business
(A) I, III, and IV
(B) II, III, and IV .
(C) Land IV
(D) I and IV
Order Direct Participation Programs Discussion
General and limited partners in a DPP are governed by which of the
following?
(A) Partnership papers
(B) Agreement of limited partnership
(C) Articles of incorporation
(D) None of the above
A limited partner in a DPP steps in to manage the partnership. Which of
the following would occur?
(A) The limited partner needs to increase his or her contribution to the
partnership.
(B) The limited partner could share in the profits with the general
partner(s).
(C) The limited partner’s status could end.
(D) The limited partner would be paid as a manager.
Having a hard time figuring out how to do your assignment?
Hire our experts and have it done in no time!

Still stressed from student homework?
Get quality assistance from academic writers!
Open chat
1
You can contact our live agent via WhatsApp! Via + 1 9294730077

Feel free to ask questions, clarifications, or discounts available when placing an order.

Order your essay today and save 20% with the discount code HURRAY