Art's At-Risk Amount in a Passive Activity Was $60,000 at the Beginning

question 49

Multiple Choice

Art's at-risk amount in a passive activity was $60,000 at the beginning of 2011.His loss from the activity in 2011 is $80,000, and he had no passive activity income during the year. Art had $20,000 of passive income from the activity in 2012.Under the passive loss rules, Art's suspended loss at the end of 2012 is:

• A)$15,000.
• B)$20,000.
• C)$45,000.
• D)$60,000.
• E)None of the above.

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Definitions:

Transitive

In mathematics and logic, transitive refers to a relation where if relation A exists between B and C, and relation A exists between C and D, then the relation must also exist between B and D.

Complete

In a market context, it refers to a situation where there is sufficient information and resources for transactions to occur without any barriers.

Indifference Curves

Graphical representations showing different combinations of goods that provide the same level of satisfaction or utility to a consumer.

Midterm Exams

Midterm exams are tests given roughly halfway through an academic term to assess students' understanding and mastery of the course material up to that point.