Josh Has Investments in Two Passive Activities

question 32

Multiple Choice

Josh has investments in two passive activities. Activity A (acquired three years ago) produces income of $30,000 this year, while Activity B (acquired two years ago) produces a loss of $50,000. What is the amount of Josh's suspended loss for the year?

• A) $0
• B) $18,000
• C) $20,000
• D) $50,000
• E) None of the above

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Definitions:

Verbal Comprehension

The ability to understand words, sentences, and the overall meaning of what is spoken or written.

Collective Habits

Shared routines or practices among a group of individuals that are repeated regularly.

Curiosity

A strong desire to know or learn something.

Groups

Collections of individuals who come together to achieve a common goal or share a common interest.