Carlos opens a dry cleaning store during the year. He invests $30,000 of his own money and borrows $60,000 from a local bank. He uses $40,000 of the loan to buy a building and the remaining $20,000 for equipment. During the first year, the store has a loss of $24,000. How much of the loss can Carlos deduct if the loan from the bank is nonrecourse? $
How much does Carlos have at risk at the end of the first year? $

How much of the loss can Carlos deduct if the loan from the bank is non-recourse? No deduction because he is not personally liable for debt or loan used in the trade that holds real property.

How much does Carlos have at risk at the end of the first year? $30000

answer; /// i believe that the correct answer is (covenant;

urban company reports the following information regarding its production cost: units produced 37,000 units direct labor $ 30 per unit direct materials $ 35 per unit variable overhead $ 237,000 in total fixed overhead $ 127,000 in total