I have two accounting questions I need guidelined within 2 hours(timed test). Thank you.

 ATTACHMENT PREVIEW Download attachment1. Riley owned an interest in several limited partnerships in 2016. Gains and losses passedthrough to Riley are as follows.PartnershipDate AcquiredAllocated Gain (Loss)STEW 1013/26/84$30,000STEW 1025/19/86(30,000)STEW 10311/13/88(5,000)STEW 1041/08/89(6,000)STEW 1057/11/9023,000(a) What is Riley’s net passive loss for 2016?(b) How much of the loss may be deducted against active and portfolio income?(c) How much of the loss is a suspended loss?2.Felicity Inc. is a calendar-year S corporation with two shareholders who each own 50 shares ofstock. All shareholders purchased their stock for $10,000. Mr. D, one of the shareholders, madeloans to the corporation of $7,000 and $6,000 on August 1, 2015, and June 15, 2016,respectively. Mr. D also guaranteed Felicity’s $20,000 bank loan of $20,000. Felicity Inc. had$15,000 ordinary income on December 31, 2015. Both shareholders reported their share of thecorporation’s income on their individual returns for 2015. For 2016, Felicity Inc. reported anordinary loss of $5,000. No distributions were made in 2015 or 2016 by the corporation. What isthe adjusted basis of Mr. D’s stock on December 31, 2016? If an item does not contribute tobasis, please explain.

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