Nancy Reports the Following Income and Loss in the Current

question 1

Multiple Choice

Nancy reports the following income and loss in the current year. All three activities are passive activities with respect to Nancy.Nancy also has $21,000 of suspended losses attributable to activity C carried over from prior years.During the year,Nancy sells activity C and realizes a $15,000 taxable gain.What is Nancy's AGI as a result of these transactions?

• A)$50,000
• B)$55,000
• C)$64,000
• D)$71,000

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Definitions:

Strategic Items

Products or components critical to a company's competitive position and operational performance.

Availability

The degree to which a product, service, or resource is obtainable or accessible.

General Items

Products or commodities that are basic and nondescript, typically stocked regularly.

Critical Items

Items that are essential for the production process or meet customer demands, where their absence can significantly impact operations.