Jorge Owns Activity X Which Produced a $20,000 Passive Loss

question 20

Multiple Choice

Jorge owns activity X which produced a $20,000 passive loss last year.Jorge's only income last year was wages of $30,000.Jorge is a material participant in activity X this year when it produces a $14,000 loss.This year,Jorge's wages are $40,000.This year,Jorge also has passive activity income from activity Y of $16,000.What is the total passive activity loss carryover to next year?

• A)$0
• B)$3,000
• C)$4,000
• D)$18,000

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Definitions:

Lymphocytes

A subtype of white blood cells that play an integral role in the body's immune response.

Carcinogens

Substances that are known to cause cancer in living tissue.

Serotonin

A neurotransmitter that plays a role in mood regulation, digestion, sleep, and other bodily functions.

Sympathetic Nervous System

Part of the autonomic nervous system that prepares the body for quick action in emergencies; "fight or flight" response.