Randall Invested $200,000 in Activity a and $100,000 in Activity

question 13

Multiple Choice

Randall invested $200,000 in Activity A and $100,000 in Activity B both passive) in 2002.At the beginning of 2016,Randall's at-risk amount was $20,000 in A and $15,000 in B.Activity A had a loss of $25,000 and Activity B had income of $30,000.What is the amount of income or loss recognized in 2016 from these activities?

• A)$5,000 income.
• B)$10,000 income.
• C)$25,000 loss.
• D)$0.

---

Definitions:

Sold Units

The number of units of a product or goods that have been sold during a specific period.

FIFO Perpetual

An inventory valuation method where the first goods purchased are the first ones sold, continuously updated for each sale and purchase.

Inventory Records

Documentation that details the quantity, type, and value of a company's inventory at a particular time.

Inventory Value

The total cost associated with the goods a company intends to sell, calculated at either the cost to produce/buy them or their current market value.