Ling Owns 3 Passive Investments At the End of 2018 What Is the Amount of She

question 7

Multiple Choice

Ling owns 3 passive investments. During the last two years, she has the following income and loss from each activity:
?
$$\begin{array} { l r r } & 2017 & 2018 \\\text { Activity 1 } & \$ ( 14,000 ) & \$ ( 6,000 ) \\\text { Activity 2 } & ( 6,000 ) & ( 1,000 ) \\\text { Activity 3 } & 8,000 & 12,000\end{array}$$
At the end of 2018 what is the amount of suspended loss allocated to Activity 2?

• A)$1,695
• B)$1,815
• C)$5,185
• D)$5,305
• E)$7,000

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Definitions:

Currency Values

The worth of one country's currency in terms of another's, influenced by economic conditions and political stability.

Currency Cross Rate

The exchange rate between two currencies, calculated based on their common exchange rates with a third currency, usually the US dollar, without needing direct exchange between the two currencies.

Exchange Rate

The price at which one currency can be exchanged for another currency.

Third Currency

A currency used as an intermediary for trading between two currencies that are not directly exchangeable.