Joy Reports the Following Income and Loss Activities A,B,and C Are All Passive Activities

question 28

Multiple Choice

Joy reports the following income and loss: $$\begin{array} { | l | r | } \hline \text { Salary } & \$ 120,000 \\\hline \text { Income from activity A } & 60,000 \\\hline \text { Loss from activity B } & ( 35,000 ) \\\hline \text { Loss from activity C } & ( 55,000 ) \\\hline\end{array}$$ Activities A,B,and C are all passive activities.
Based on this information,Joy has the following suspended losses:

• A) \[\begin{array} { | l | l | }
• \hline \text { Activity B } & \text { Activity C } \\
• \hline \$ 1,667 & \$ 18,333 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | l | }
• \hline \text { Activity B } & \text { Activity C } \\
• \hline \$ 35,000 & \$ 55,000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | l | }
• \hline \text { Activity B } & \text { Activity C } \\
• \hline 10,000 & \$ 20,000\\\hline
• \end{array}\]
• D) \[\begin{array} { | l | l | }
• \hline \text { Activity B } & \text { Activity C } \\
• \hline \$ 0 & \$ 0 \\
• \hline
• \end{array}\]

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Definitions:

Communicating Benefits

The process of informing employees about their compensation, health insurance, and other employment benefits.

Healthcare Subsidized

A situation where government or another entity provides financial assistance to reduce the cost of health care for individuals, making it more accessible and affordable.

Benefits Costs

The expenses that an organization incurs to provide benefits to its employees, including health insurance, retirement plans, and paid time off.

Employment Insurance Fund

A government-operated fund that provides financial assistance to eligible unemployed individuals, helping them to support themselves while they seek new employment.