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

question 88

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.

---

Definitions:

Bad Apple Effect

A phenomenon where the negative behaviors of one individual can influence an entire group, leading to overall worse outcomes or moral standards.

Propinquity Effect

The phenomenon whereby people are more likely to form relationships with those they encounter frequently.

Deviant

A behavior or condition that goes against societal norms or standards.

Nonconformist

An individual who does not adhere to the prevailing ideas, rules, or practices of their society or group.