Pablo, Who Is Single, Has $95,000 of Salary, $10,000 of Income

question 98

Multiple Choice

Pablo, who is single, has $95,000 of salary, $10,000 of income from a limited partnership, and a $27,000 passive activity loss from a real estate rental activity in which he actively participates. His modified adjusted gross income is $95,000. Of the $27,000 loss, how much is deductible?

• A) $0
• B) $10,000
• C) $25,000
• D) $27,000
• E) None of the above

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Definitions:

Chief Financial Officer

A senior executive responsible for managing the financial actions of a company, including financial planning, risk management, and financial reporting.

Fortune 500

An annual list published by Fortune magazine that ranks 500 of the largest United States corporations by total revenue.

Corrective Steps

This term refers to actions taken to fix problems, address failures, or correct mistakes in a process, plan, or operation.

Exact Opposite

Something that is completely different in every way from something else.