Josh Has Investments in Two Passive Activities

question 111

Multiple Choice

Josh has investments in two passive activities. Activity A, acquired three years ago, produces income in the current year of $60,000. Activity B, acquired last year, produces a loss of $100,000 in the current year. At the beginning of this year, Josh's at-risk amounts in Activities A and B are $10,000 and $100,000, respectively. What is the amount of Josh's suspended passive activity loss with respect to these activities at the end of the current year?

• A) $0
• B) $36,000
• C) $40,000
• D) $100,000
• E) None of the above

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Definitions:

Life Span

The maximum duration of life of a species or individual, encompassing all phases from birth to death.

Parenting

The process of promoting and supporting the physical, emotional, social, and intellectual development of a child from infancy to adulthood.

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The act of disclosing private or sensitive information with another person, trusting them to keep it secret.

Technology

Refers to the application of scientific knowledge for practical purposes, especially in industry.