Shey Is Single and Operates Two Businesses

question 65

Multiple Choice

Shey is single and operates two businesses. This year, business A generated $300,000 of taxable profit. Business B generated a $(625,000) loss. How much of Shey's business loss is not currently deductible due to the excess business loss limitation?

• A) $(625,000)
• B) $(325,000)
• C) $(66,000)
• D) $0

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Definitions:

Government Purchases

Expenditures by the government sector for goods and services that are consumed within the current period.

Closed Economy

An economic system that does not interact with other economies in terms of international trade or financial transactions.

Public Saving

The difference between tax revenues and government expenditures, typically representing the amount of surplus funds the government has.

Closed Economy

An economic system that does not engage in international trade, instead relying on its own internal markets for goods and services.