Matt Has Three Passive Activities and Has At-Risk Amounts in Excess

question 62

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) . ​
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:

Financial Statements

Documents that provide an overview of a company's financial condition, including income statements, balance sheets, and statements of cash flows.

Journal

A financial record where all transactions are initially recorded in chronological order before being posted to individual accounts.

Chronologically

In order of time, from the earliest to the latest.

Unearned Revenues

Money received by a company for services or goods yet to be provided or delivered, recorded as a liability.