Damarcus is a 50 percent owner of Rockit (a business entity). In the current year, Rockit reported a $100,000 business loss. Answer the following questions associated with each of the following alternative scenarios: Rockit is organized as a C corporation and Damarcus works full time as an employee for Rockit. Damarcus has a $20,000 basis in his Rockit stock. How much of Rockit’s loss is Damarcus allowed to deduct against his other income? Rockit is organized as an LLC taxed as a partnership. Fifty percent of Rockit’s loss is allocated to Damarcus. Damarcus works full time for Rockit (he is not considered to be a passive investor in Rockit). Damarcus has a $20,000 basis and at-risk amount in his ownership interest in Rockit. Damarcus does not report income or loss from any other business activity investments. How much of the $50,000 loss allocated to him by Rockit is Damarcus allowed to deduct this year? Page 4-45 Rockit is organized as an LLC taxed as a partnership. Fifty percent of Rockit’s loss is allocated to Damarcus. Damarcus does not work for Rockit at all (he is a passive investor in Rockit). Damarcus has a $20,000 basis and at-risk amount in his ownership interest in Rockit. Damarcus does not report income or loss from any other business activity investments. How much of the $50,000 loss allocated to him by Rockit is Damarcus allowed to deduct this year? Rockit is organized as an LLC taxed as a partnership. Fifty percent of Rockit’s loss is allocated to Damarcus. Damarcus works full time for Rockit (he is not considered to be a passive investor in Rockit). Damarcus has a $70,000 basis and at-risk amount in his ownership interest in Rockit. Damarcus does not report income or loss from any other business activity investments. How much of the $50,000 loss allocated to him by Rockit is Damarcus allowed to deduct this year?