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

question 57

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) .
$\begin{array}{lr}\text { Activity A } & (\$ 60,000) \\\text { Activity B } & (40,000) \\\text { Activity C } & 75,000 \\\text { Net passive loss } & (\$ 25,000) \\\text { Matt's suspended losses are as follows: } &\end{array}$

• A)\(\$ 25,000 \text { is allocated to } C \text {, } \$0\text { to } A \text { and } B\)
• B)\(\$ 12,500 \text { is allocated to } A , \$ 12,500 \text { to } \mathrm { B } \text {. }\)
• C)\(\$ 15,000 \text { is allocated to } A , \$ 10,000 \text { to } B \text {. }\)
• D)\(\$ 8.333 \text { is allocated to } A , B \text {, and } C \text {. }\)
• E)none of these