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:

Spherical

Having the shape or form of a sphere, meaning it is perfectly round in all directions.

Optic Disc

The point on the retina at which the optic nerve fibers exit the eye, creating the blind spot as it lacks photoreceptors.

Fovea Centralis

A small depression in the retina of the eye where visual acuity is highest, due to the concentration of cone cells.

Blind Spot

The blind spot is an area on the retina without photoreceptors where the optic nerve exits the eye, resulting in a gap in the visual field.