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

question 88

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) . $\begin{array}{ll}\text { Activity A } && (\$ 60,000) \\\text { Activity B } && (40,000) \\\text { Activity C } & &75,000 \\\text { Net passive activity loss } &\underline{\quad\quad}& (\$ 25,000) \end{array}$ 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 these.

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Definitions:

Conflicts

Situations or internal dilemmas that arise when incompatible demands, needs, or goals occur between or within individuals.

Psychosocial Development

A theory by Erik Erikson that describes how individuals evolve through various social and emotional stages from infancy to adulthood.

Maladaptive Coping

Unhealthy ways of dealing with stress, emotions, or problems that can exacerbate the situation or cause additional issues.

Ego Identity

A sense of one's identity and personal worth developed during adolescence, as conceptualized by Erik Erikson.