Charlie Owns Activity B Which Was Considered a Passive Activity

question 83

Multiple Choice

Charlie owns activity B which was considered a passive activity and generated a $17,000 suspended loss.Charlie increases his involvement with activity B so that this year activity B is not considered passive for Charlie.During this year,activity B produces a $9,000 loss.In addition,Charlie acquires an investment in activity X,a passive activity,this year.Charlie's share of activity X's income is $13,000.Charlie's salary this year is $70,000.As a result,this year Charlie must

• A)offset B's loss carryover against X's current income and carry over $9,000 loss from activity B to next year.
• B)offset B's carryover loss and current loss against X's income first and then offset any remaining loss against salary.
• C)offset B's $9,000 loss against X's $13,000 income and offset B's loss carryover against the remaining $4,000 of X's income.
• D)offset B's current $9,000 loss against his salary and offset B's loss carryover against X's income and carry over $4,000 of loss to next year.

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Definitions:

Uncontrollable Sleepiness

A condition characterized by an overwhelming urge to sleep at inappropriate times, despite adequate rest.

Sleep Disorder

A medical disorder of the sleep patterns of a person or animal, which can interfere with physical, mental, social, and emotional functioning.

Sleep Apnea

A sleep disorder marked by pauses in breathing or periods of shallow breathing during sleep, leading to disrupted sleep and other health issues.

Breathing While Asleep

The automatic process of respiration during sleep, which includes both inhaling and exhaling air to provide oxygen to the body and remove carbon dioxide.