Samantha Sells a Passive Activity (Adjusted Basis of $50,000) for $90,000.Suspended

question 48

Multiple Choice

Samantha sells a passive activity (adjusted basis of $50,000) for $90,000.Suspended losses attributable to this property total $30,000.The realized gain and the taxable gain are:

• A)$40,000 realized gain; $70,000 taxable gain.
• B)$10,000 realized gain; $10,000 taxable gain.
• C)$40,000 realized gain; $0 taxable gain.
• D)$40,000 realized gain; $10,000 taxable gain.
• E)None of the above.

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