Mara Owns an Activity with Suspended Passive Losses from Prior

question 85

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(n)

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

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Definitions:

Echoing

The repetition or mimicking of words or sounds, often used as a learning tool or as a symptom of certain disorders.

Expanding

The act or process of increasing in size, volume, quantity, or scope.

Infant Language Development

The process by which babies and young children acquire the ability to understand and produce language.

Spoken Word

A form of literary art or performance art where poetry, stories, or ideas are spoken rather than sung or written.