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:

Structured Interviews

Structured interviews are a systematic way of asking questions in which the interviewer follows a set sequence and the questions are predetermined to ensure consistency across all interviews.

Subjective Judgments

Subjective Judgments are opinions or decisions based on personal feelings, tastes, or opinions rather than objective facts or evidence.

Unstructured Interviews

Unstructured Interviews are qualitative interviews without a set script or format, allowing for open-ended responses and a flexible discussion.

Rorschach Inkblot Test

A psychological test in which individuals' perceptions of inkblots are analyzed to evaluate their personality and emotional functioning.