Mara Owns an Activity with Suspended Passive Losses from Prior

question 18

Multiple Choice

Mara owns an activity with suspended passive losses from prior years of $13,000.In the current year,Mara becomes a material participant in the activity.This year the activity generates $6,000 of income.The net effect of this activity on Mara's current year AGI is

• A)an increase of $6,000.
• B)a decrease of $13,000.
• C)0)
• D)a decrease of $7,000.

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Definitions:

Age

The length of time that a person or object has existed; a particular stage in someone’s life or history.

Geographic Location

The specific physical coordinates of a place, often defined by its latitude and longitude.

Tangible Rewards

Physical or material rewards given to acknowledge performance, achievement, or service, such as bonuses, gifts, or trophies.

Measurable Rewards

Rewards that can be quantified or assessed, often used as motivation or recognition in various contexts.