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:

Employee Polygraph Protection Act

A federal law that prohibits most private employers from using lie detector tests, either for pre-employment screening or during the course of employment.

Adverse Reactions

Negative or harmful responses, typically in the context of pharmaceuticals, but can also apply to feedback or reactions in other areas.

Polygraph Tests

Lie detector tests used in some hiring processes to verify the truthfulness of potential or current employees' statements.

Fair Credit Reporting Act

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