Art's At-Risk Amount in a Passive Activity Was $60,000 at the Beginning

question 19

Multiple Choice

Art's at-risk amount in a passive activity was $60,000 at the beginning of 2016. His loss from the activity in 2016 is $80,000, and he had no passive activity income during the year. Art had $20,000 of passive activity income from the activity in 2017. Under the passive activity loss rules, Art's suspended loss at the end of 2017 is:

• A)$15,000.
• B)$20,000.
• C)$45,000.
• D)$60,000.
• E)None of the above.

Explain the importance of attorney supervision over paralegal work.

Recognize the entities involved in the regulation and direct regulation of paralegals.

Understanding attorney-client privilege, starting, duration, and confidentiality maintenance.

Discuss the debate on paralegal licensing and the unauthorized practice of law.

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Definitions:

Accounting Period

The time frame covered by the financial statements of a company, typically a fiscal year or quarter, used to calculate earnings and track financial performance.

Dividends Account

An account used to record the distribution of a portion of a company's earnings to its shareholders.

Revenue Accounts

Accounts that track the income a company generates from its normal business activities, typically from the sale of goods and services to customers.

Fees Earned

Revenue generated from services provided or work performed, often used in the context of professional services like legal or consulting firms.