Ricardo Owns Interests in 3 Passive Activities: A, B, and C

question 74

Multiple Choice

Ricardo owns interests in 3 passive activities: A, B, and C. During the current year, activity A realizes income of $8,000 while activities B and C realize losses of $16,000 and $24,000, respectively. Determine the amount of suspended loss attributable to activity C.

• A)$- 0 -
• B)$ 8,000
• C)$12,800
• D)$19,200
• E)$24,000

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Definitions:

Mentally Represent

The ability to internally hold and manipulate images, concepts, and ideas without the presence of the actual objects or situations.

Deferred Imitation

The imitation of people and events that were encountered or experienced hours, days, or weeks in the past.

A Not B Error

A phenomenon seen in infant cognitive development where babies will repeatedly search for an object where they first found it, even after seeing it moved to a new location.

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or otherwise sensed; typically develops in the first few years of life.