Linda Owns Three Passive Activities That Had the Following Results

question 115

Multiple Choice

Linda owns three passive activities that had the following results for the current year:
$\begin{array}{lc}\text { Passive Activity A } & \$(4,500) \\\text { Passive Activity B } & 20,000 \\\text { Passive Activity C } & (25,500) \end{array}$
If none of the passive activities are rental real estate activities,what is the amount of suspended loss attributable to Activity A?

• A)$ - 0 -
• B)$ 1,500
• C)$ 4,500
• D)$ 8,500
• E)$10,000

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Definitions:

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, reflecting the good’s sensitivity to price changes.

Substitute

An alternative product or service that consumers can choose over another based on similarities in function, utility, or purpose.

Marketing Mix

A foundational marketing model consisting of the four Ps: Product, Price, Place, and Promotion, used to ensure the successful marketing of a product or service.

Generate Costs

The process of incurring expenses as a result of conducting business activities or operations.