Josh Has Investments in Two Passive Activities

question 26

Multiple Choice

Josh has investments in two passive activities.Activity A,acquired three years ago,produces income in the current year of $60,000.Activity B,acquired last year,produces a loss of $100,000 in the current year.At the beginning of this year,Josh's at­risk amounts in Activities A and B are $10,000 and $100,000,respectively.What is the amount of Josh's suspended passive loss with respect to these activities at the end of the current year?

• A)$0
• B)$36,000
• C)$40,000
• D)$100,000
• E)None of these

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