Randall Invested $200,000 in Activity a and $100,000 in Activity

question 32

Multiple Choice

Randall invested $200,000 in Activity A and $100,000 in Activity B (both passive) in 2003.At the beginning of 2017,Randall's at-risk amount was $20,000 in A and $15,000 in B.Activity A had a loss of $25,000 and Activity B had income of $30,000.What is the amount of income or loss recognized in 2017 from these activities?

• A)$0.
• B)$5,000 income.
• C)$10,000 income.
• D)$25,000 loss.

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Definitions:

Formal Group

An organized collection of individuals with a defined structure that is established to achieve specific goals.

Organizational Boundaries

Limits that define an organization's structure, roles, and responsibilities, and separate it from its environment and other organizations.

Grapevine Network

An informal communication network within an organization, characterized by the personal, unofficial sharing of information among employees.

Laissez-Faire Leadership

A leadership style characterized by minimal supervision, where leaders provide tools and resources but allow individuals to solve problems on their own.