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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Definitions:

Lipids

A broad group of naturally occurring molecules that include fats, waxes, sterols, and fat-soluble vitamins among others, used for energy storage and as structural components of cell membranes.

Organic Acids

Organic acids are a group of acidic compounds that contain carbon and are found in many plants and animals, essential in various biochemical processes.

Inorganic Ions

Charged atoms or molecules that do not contain carbon-hydrogen bonds, often playing crucial roles in physiological processes.

Fingerprint

Unique patterns formed by ridges on the tips of fingers, used for identifying individuals.