Matt Has Three Passive Activities and Has At-Risk Amounts in Excess

question 122

Multiple Choice

Matt has three passive activities and has at-risk amounts in excess of $100,000 for each.During the year, the activities produced the following income (losses) . $$\begin{array} { l r } \text { Activity A } & ( \$ 60,000 ) \\\text { Activity B } & ( 40,000 ) \\\text { Activity C } & 75,000 \\\text { Net passive activity loss } & ( \$ 25,000 ) \\\hline\end{array}$$ ? Matt's suspended losses are as follows:

• A)$25,000 is allocated to C; $0 to A and B.
• B)$12,500 is allocated to A; $12,500 to B.
• C)$15,000 is allocated to A; $10,000 to B.
• D)$8,333 is allocated to A, B, and C.
• E)None of the above.

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Definitions:

Behaviors

Actions or reactions of individuals, usually in relation to their environment, which can be observable by others.

Risk

The probability of encountering harm or a loss in a given situation.

Health Psychology

A branch of psychology that focuses on how biological, psychological, and social factors affect health and illness.

Cardiac Rehabilitation

A customized program of exercise, education, and support to help patients recover after a heart attack, surgery, or other heart conditions.