In 2011,Glenda Had a $97,000 Loss on a Passive Activity

question 96

Multiple Choice

In 2011,Glenda had a $97,000 loss on a passive activity.None of the loss is attributable to AMT adjustments or preferences.She has no other passive activities.Which of the following statements is correct?

• A) In 2011, Glenda can deduct $97,000 for regular income tax purposes and for AMT purposes.
• B) Glenda will have a $97,000 tax preference in 2011 as a result of the passive activity.
• C) For regular income tax purposes, none of the loss is allowed in 2011.
• D) In 2011, Glenda will have a positive adjustment of $25,000 as a result of the passive loss.
• E) None of the above.

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Definitions:

Quality Problems

Issues related to the inferior performance, defects, or non-conformity of a product or service.

Frequency

The rate at which something occurs or is repeated over a particular period of time or in a given sample.

Six Sigma

A set of techniques and tools for process improvement, aimed at reducing variability and defects in manufacturing and business processes.

Quality Management System

A framework of processes and procedures used to ensure that an organization can consistently meet customer and regulatory requirements for quality.