Alex Has Three Passive Activities with At-Risk Amounts in Excess

question 11

Multiple Choice

Alex has three passive activities with at-risk amounts in excess of $100,000 for each.During the year,the activities produced the following income (losses) . Alex's suspended losses are as follows:

• A)$75,000 is allocated to C; $0 to A and B.
• B)$37,500 is allocated to A; $37,500 to B.
• C)$56,250 is allocated to A; $18,750 to B.
• D)$25,000 is allocated to A,B,and C.
• E)None of the above.

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Definitions:

Goods

Physical items that are produced for sale on the market, which can satisfy human wants or needs, such as food, clothes, and cars.

Trade

The exchange of goods, services, or both between two or more parties, either within the same country or across international borders.

Different Goods

Variety of products or items that satisfy different needs and wants or provide various forms of utility to consumers.

Double Coincidence

A situation in bartering where two parties each hold an item the other wants, enabling them to exchange these items directly without the need for money.