Jana Reports the Following Income and Loss: Activities A

question 1072

Multiple Choice

Jana reports the following income and loss: Activities A, B, and C are all passive activities. Based on this information, Jana will recognize

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

---

Definitions:

Right Answer

The correct solution or reply to a question or problem, often determined by factual information or established norms.

Eminent Creativity

A high level of creative ability that significantly impacts a field or area, demonstrating originality and innovation.

Little "c"

Often refers to the "little c creativity," which denotes everyday problem-solving and creative processes that are not necessarily groundbreaking but important for daily tasks.

Stumbling Blocks

Obstacles or barriers that hinder progress or make it difficult to achieve a goal.