Sandra Acquired a Passive Activity Three Years Ago

question 120

Multiple Choice

Sandra acquired a passive activity three years ago. Until last year, the activity was profitable and her at-risk amount was $300,000. Last year, the activity produced a loss of $100,000, and in the current year, the loss is $50,000. Assuming Sandra has received no passive activity income in the current or prior years, her suspended passive activity loss from the activity is:

• A) $90,000 from last year and $50,000 from the current year.
• B) $100,000 from last year and $50,000 from the current year.
• C) $0 from last year and $0 from the current year.
• D) $50,000 from the current year.
• E) None of the above.

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Definitions:

G1

A phase in the cell cycle during interphase, preceding DNA synthesis (S phase), where the cell grows and prepares for DNA replication.

S Phase

The phase of the cell cycle in which DNA is replicated, occurring between G1 phase and G2 phase.

Sister Chromatids

Identical copies of a chromosome connected by a centromere, formed during DNA replication.

Anaphase

A phase of mitosis and meiosis in which the chromosomes separate and move to opposite ends of the cell.