Matt Has Three Passive Activities and Has At-Risk Amounts in Excess

question 14

Multiple Choice

Matt has three passive activities and has at-risk amounts in excess of $100,000 for each.During the year,the activities produced the following income (losses) .
Activity A
($60,000)
Activity B
(40,000)
Activity C
75,000
Net passive activity loss
($25,000)
Matt's suspended losses are as follows:

• A)$25,000 is allocated to C;$0 to A and B.
• B)$12,500 is allocated to A;$12,500 to B.
• C)$15,000 is allocated to A;$10,000 to B.
• D)$8,333 is allocated to A,B,and C.
• E)None of the above.

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Definitions:

Reduced

A process or result of making something smaller or less in amount, degree, or size.

Cyclic Electron Pathway

A photosynthetic process where electrons are recycled in order to produce ATP without the production of NADPH or oxygen.

Noncyclic Electron Pathway

A pathway of photosynthesis where electrons flow in a linear manner from water to NADP+, producing NADPH without the return of electrons to the light-absorbing pigment.

Calvin Cycle

A set of chemical reactions that take place in chloroplasts during photosynthesis, where carbon dioxide is converted into glucose.