Wes's At-Risk Amount in a Passive Activity Is $25,000 at the Beginning

question 70

Multiple Choice

Wes's at-risk amount in a passive activity is $25,000 at the beginning of the current year.His current loss from the activity is $35,000 and he has no passive activity income.At the end of the current year, which of the following statements is incorrect?

• A)Wes has a loss of $25,000 suspended under the passive activity loss rules.
• B)Wes has an at-risk amount in the activity of $0.
• C)Wes has a loss of $10,000 suspended under the at-risk rules.
• D)Wes has a loss of $35,000 suspended under the passive activity loss rules.
• E)None of these is incorrect.

---

Definitions:

Autonomic Arousal

The activation of the autonomic nervous system, leading to physiological changes such as increased heart rate, sweating, or rapid breathing.

Emotional Experience

The complex state of feeling that results from the interaction of subjective and physiological factors.

James-Lange Theory

A theory of emotion that suggests physical arousal precedes and causes emotional experience.

Cannon-Bard Theory

A theory of emotion that argues that physiological arousal and emotional experience occur simultaneously, yet independently.