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.