Mara Owns an Activity with Suspended Passive Losses from Prior

question 85

Multiple Choice

Mara owns an activity with suspended passive losses from prior years of $13,000.In the current year,Mara becomes a material participant in the activity.This year the activity generates $6,000 of income.The net effect of this activity on Mara's current year AGI is a(n)

• A)increase of $6,000.
• B)decrease of $13,000.
• C)0)
• D)decrease of $7,000.

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Definitions:

Identification

The process of recognizing or establishing the identity of a person or thing.

Performance Management

A continuous process of planning, monitoring, and reviewing an employee's work objectives and overall contribution to the organization.

Development Needs

The requirements an individual or organization has to improve competencies, skills, and abilities in order to achieve better performance or growth.

High-Performance Work System

An organizational approach combining human resource practices, policies, and work structures to optimize employee performance and overall effectiveness.