Josh Has Investments in Two Passive Activities

question 72

Multiple Choice

Josh has investments in two passive activities.Activity A, acquired three years ago, produces income in the current year of $60,000.Activity B, acquired last year, produces a loss of $100,000 in the current year.At the beginning of this year, Josh's at-risk amounts in Activities A and B are $10,000 and $100,000, respectively.What is the amount of Josh's suspended passive activity loss with respect to these activities at the end of the current year?

• A)$0
• B)$36,000
• C)$40,000
• D)$100,000
• E)None of these

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Definitions:

Molarity

A unit of concentration indicating the number of moles of a solute dissolved in one liter of solution, often used in chemical solutions for its precision.

Diluted

Refers to a solution that has had its concentration of solute reduced, typically by adding more solvent.

Molarity

A measure of concentration expressed as the number of moles of a solute per liter of solution.

Diluted

The process of reducing the concentration of a solute in a solution, typically by adding more solvent.