During the Year, Mark Reports $90,000 of Active Business Income

question 817

Multiple Choice

During the year, Mark reports $90,000 of active business income from his law practice. He also owns two passive activities. From Activity A, he earns $20,000 of income, and from Activity B, he incurs a $30,000 loss. As a result, Mark

• A) reports AGI of $80,000.
• B) reports AGI of $90,000 with a $30,000 passive loss carryover.
• C) reports AGI of $110,000 with a $30,000 passive loss carryover.
• D) reports AGI of $90,000 with a $10,000 passive loss carryover.

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Definitions:

Least Advantaged

Referring to individuals or groups that are most disadvantaged or lacking in resources, opportunities, and support in a society.

Parties

Social gatherings of invited guests, typically involving eating, drinking, and entertainment; can also refer to political groups organized to gain authority within a government.

Rawls

A philosopher known for his theory of justice as fairness, emphasizing equal basic rights, liberty, and the distribution of social goods.

Principles of Justice

Fundamental ideals of fairness and equity that guide moral and legal reasoning.