Nell Sells a Passive Activity with an Adjusted Basis of $45,000

question 1

Multiple Choice

Nell sells a passive activity with an adjusted basis of $45,000 for $105,000.Suspended losses attributable to this property total $45,000.The total gain and the taxable gain are:

• A)$60,000 total gain; $105,000 taxable gain.
• B)$10,000 total gain; $15,000 taxable gain.
• C)$60,000 total gain; $0 taxable gain.
• D)$60,000 total gain; $15,000 taxable gain.
• E)None of these.

---

Definitions:

Authenticity

The quality of being genuine, real, and true to one's own personality, spirit, or character, often in a manner that resonates with others.

Shinola Detroit

A luxury goods brand based in Detroit, known for its watches, bicycles, and leather goods.

Invisible Brands

Brands that are deeply integrated into consumers' lives or other products in such a way that their presence is almost unnoticed, yet their influence is significant.

Person-centered Counselor

A therapist who practices a form of counseling developed by Carl Rogers, focusing on creating a non-judgmental, empathetic relationship to foster the client's growth and personal development.