Loren Owns Three Passive Activities That Had the Following Results

question 71

Multiple Choice

Loren owns three passive activities that had the following results for the current year:
$\begin{array}{ll}\text { Passive Activity A } & \$ 25,000 \\\text { Passive Activity B } & (10,000) \\\text { Passive Activity C } & (40,000) \end{array}$
If none of the passive activities are rental real estate activities,what is the amount of suspended loss attributable to Activity C?

• A)$ - 0 -
• B)$18,750
• C)$20,000
• D)$25,000
• E)$40,000

---

Definitions:

Graphically

Representing data, information, or functions visually, often using charts, graphs, or diagrams.

Set of Equations

Refers to a collection of two or more equations with the same set of variables, which are to be solved simultaneously.

Graph

A diagram representing data visually using lines, bars, or other symbols.

Equation

A statement of the equality of two algebraic expressions.