Sandra Acquired a Passive Activity Three Years Ago

question 120

Multiple Choice

Sandra acquired a passive activity three years ago. Until last year, the activity was profitable and her at-risk amount was $300,000. Last year, the activity produced a loss of $100,000, and in the current year, the loss is $50,000. Assuming Sandra has received no passive activity income in the current or prior years, her suspended passive activity loss from the activity is:

• A) $90,000 from last year and $50,000 from the current year.
• B) $100,000 from last year and $50,000 from the current year.
• C) $0 from last year and $0 from the current year.
• D) $50,000 from the current year.
• E) None of the above.

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Definitions:

Geologic History

The record of Earth's physical history and the processes acting upon the planet, as deciphered from rocks, fossils, and other geological data.

Cenozoic

The Cenozoic era is the current geological era, beginning about 66 million years ago, characterized by the dominance of mammals, the formation of modern continents, and significant climatic changes.

Geologic Timescale

A system of chronological dating that relates geological strata to time, used by geologists and other Earth scientists to describe the timing and relationships of events in geologic history.

Density

Density refers to the mass of a substance per unit volume, a fundamental property affecting the buoyancy and stability of objects in fluids.