Vic's At-Risk Amount in a Passive Activity Is $200,000 at the Beginning

question 76

Multiple Choice

Vic's at-risk amount in a passive activity is $200,000 at the beginning of the current year.His current loss from the activity is $80,000.Vic had no passive activity income during the year.At the end of the current year:

• A)Vic has an at-risk amount in the activity of $120,000 and a suspended passive loss of $80,000.
• B)Vic has an at-risk amount in the activity of $200,000 and a suspended passive loss of $80,000.
• C)Vic has an at-risk amount in the activity of $120,000 and no suspended passive loss.
• D)Vic has an at-risk amount in the activity of $200,000 and no suspended passive loss.
• E)None of the above.

---

Definitions:

Bad News

Information that is unwelcome, disappointing, or distressing to the receiver.

Negative-News Message

Communication that conveys disappointing, unfavorable, or unwanted information to the recipient.

Buffer

A buffer serves as a temporary storage area that holds data while it's being transferred from one place to another, ensuring smooth playback or communication in computing environments.

Goodwill Message

A communication intended to foster positive relations, show appreciation, or convey good intentions.