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

---

Definitions:

Royal Ancestors

Refers to the lineage of kings and queens from which an individual descends, often used in contexts of historical or genealogical research.

Bwoom

A traditional African mask from the Kuba kingdom of the Democratic Republic of the Congo, representing royalty or other significant cultural figures in ceremonial dances.

Yoruba Artist

Refers to artisans from the Yoruba people, a large ethnolinguistic group in West Africa, known for their rich traditions in sculpture, mask-making, textiles, and beadwork.

Olowe Of Ise

A highly regarded Yoruba artist from Nigeria, known for his innovative and dynamic sculptures in wood, particularly royal doors and veranda posts.