Mara Owns an Activity with Suspended Passive Losses from Prior

question 18

Multiple Choice

Mara owns an activity with suspended passive losses from prior years of $13,000.In the current year,Mara becomes a material participant in the activity.This year the activity generates $6,000 of income.The net effect of this activity on Mara's current year AGI is

• A)an increase of $6,000.
• B)a decrease of $13,000.
• C)0)
• D)a decrease of $7,000.

---

Definitions:

Radiograph Studies

Imaging examinations that use X-rays to view the internal structure of the body, commonly known as X-ray tests.

Electronic Prescriptions

A technology that allows healthcare professionals to send prescriptions to a pharmacy electronically, improving accuracy and efficiency.

Tactful

Being able to perceive a situation and know the right thing to say or do. Tact is especially difficult and important when dealing with ill people.

Perceive

To become aware or conscious of something through the senses, especially the ability to see, hear, or become aware of something by touching or feeling.