Linda Owns Three Passive Activities That Had the Following Results

question 92

Multiple Choice

Linda owns three passive activities that had the following results for the current year:
$\begin{array}{lc}\text { Passive Activity A } & \$(4,500) \\\text { Passive Activity B } & 20,000 \\\text { Passive Activity C } & (25,500) \end{array}$
If none of the passive activities are rental real estate activities,what is the amount of suspended loss attributable to Activity A?

• A)$ - 0 -
• B)$ 1,500
• C)$ 4,500
• D)$ 8,500
• E)$10,000

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Definitions:

Marginal Cost

The cost of producing one additional unit of a good or service.

Total Output

The aggregate quantity of goods or services produced in an economy or by a company during a specific period.

Fixed Costs

Costs that remain constant regardless of the amount of goods produced or units sold, including expenses like rent, wages, and insurance premiums.