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In the current year, Lucile, who has AGI of $70,000 before considering rental activities, is active in three separate real estate rental activities and is in the 28% tax bracket. She had $15,000 of losses from Activity A, $25,000 of losses from Activity B, and income of $20,000 from Activity C. She also had $3,100 of tax credits from Activity A. Calculate her deductions and credits currently allowed and the suspended losses and credits.
Cotton Gin
Invented by Eli Whitney in 1793, the machine that separated cotton seed from cotton fiber, speeding cotton processing and making profitable the cultivation of the more hardy, but difficult to clean, short-staple cotton; led directly to the dramatic nineteenth-century expansion of slavery in the South.
Eli Whitney
An American inventor best known for inventing the cotton gin, a device that revolutionized the cotton industry.
Boll Weevil
A beetle that feeds on cotton buds and flowers, historically significant for its devastating impact on the United States cotton industry.
Mid-Nineteenth Century
Refers to the period approximately from 1830 to 1870, a time marked by significant historical events including the American Civil War.
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