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

question 75

Short Answer

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

• 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:

Extreme Poverty

A condition where individuals live below the international poverty line, facing severe deprivation of basic human needs such as food, safe drinking water, sanitation, health, shelter, and education.

Gender Inequality

The unequal treatment or perceptions of individuals based on their gender, leading to disparities in opportunity, resources, and power.

Condone

To overlook, forgive, or disregard an offense without criticism, implying a degree of acceptance or a lack of opposition.

Societies

A collective group of individuals characterized by shared traditions, institutions, and values.