Nell Sells a Passive Activity with an Adjusted Basis of $45,000

question 76

Multiple Choice

Nell sells a passive activity with an adjusted basis of $45,000 for $105,000. Suspended losses attributable to this property total $45,000. The total gain and the taxable gain are:

• A) $60,000 total gain? $105,000 taxable gain.
• B) $10,000 total gain? $15,000 taxable gain.
• C) $60,000 total gain? $0 taxable gain.
• D) $60,000 total gain? $15,000 taxable gain.
• E) None of the above.

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Definitions:

Sign Language

A language consisting of hand movements, facial expressions, and body postures used as a primary form of communication among the Deaf community.

Left Cerebral Hemisphere

The left side of the brain, responsible for controlling the right side of the body and functions such as speech and analytical thinking.

Corpus Callosum

The large band of neural fibers connecting the two hemispheres of the brain, facilitating communication between them.

Left Hemisphere

The half of the brain that is typically associated with analytical tasks, such as language, logic, and mathematical computations.