Hugh Has Four Passive Activities Which Generate the Following Income

question 74

Essay

Hugh has four passive activities which generate the following income and losses in the current year.
$\begin{array}{lc}\text { Activity } & \text { Gain (Loss) } \\& (\$ 60,000) \\\text { A } & (20,000) \\\text { C } & (10,000) \\\text { D } & {10,000} \\\text { Total } &{(\$ 80,000)}\end{array}$
How much of the $80,000 net passive loss can Hugh deduct this year? Calculate the suspended losses (by activity).

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Definitions:

Inferior Good

An item whose demand falls when consumer income rises, contrasting with normal goods where demand increases with income.

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The process of developing and applying new technologies to improve products, processes, or services.

Equilibrium Quantity

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Coffee-Bean Pickers

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