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

question 43

Multiple Choice

Jana reports the following income and loss: $$\begin{array} { | l | r | } \hline \text { Salary } & \$ 120,000 \\\hline \text { Income from activity A } & 60,000 \\\hline \text { Loss from activity B } & ( 30,000 ) \\\hline \text { Loss from activity C } & ( 70,000 ) \\\hline\end{array}$$ Activities A,B,and C are all passive activities.
Based on this information,Jana will recognize

• A)adjusted gross income of $80,000.
• B)salary of $120,000 and deductible net losses of $40,000.
• C)salary of $120,000,passive income of $60,000,and passive loss carryovers of $100,000.
• D)salary of $120,000 and net passive losses of $40,000 that will be carried over.

---

Definitions:

Scents

Volatile substances that can be perceived by the sense of smell, often used by organisms to communicate, forage, or detect predators or mates.

Supertasters

Individuals with an enhanced genetic sensitivity to certain tastes, particularly bitter flavors.

Olfactory Epithelium

The specialized tissue inside the nasal cavity involved in smell; it houses olfactory receptors that detect odors.

Hypothalamus

A small region of the brain that's crucial for hormone production and helps to regulate body temperature, mood, hunger, and sleep.