Art's At-Risk Amount in a Passive Activity Was $60,000 at the Beginning

question 92

Multiple Choice

Art's at-risk amount in a passive activity was $60,000 at the beginning of 2014.His loss from the activity in 2014 is $80,000,and he had no passive activity income during the year.Art had $20,000 of passive income from the activity in 2015.Under the passive loss rules,Art's suspended loss at the end of 2015 is:

• A)$15,000.
• B)$20,000.
• C)$45,000.
• D)$60,000.
• E)None of the above.

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Definitions:

Organism

A living entity that can act, react, and engage with its environment, displaying signs of life.

Monozygotic Twins

Twins that originate from a single fertilized egg, splitting and developing into two individuals with identical genetic information.

Genetically Identical

Having exactly the same DNA sequence in every genetic locus, as seen in identical twins or clones.

Placenta

An organ that develops in the uterus during pregnancy, providing oxygen and nutrients to the growing fetus while removing waste products.