Nell Sells a Passive Activity with an Adjusted Basis of $45,000

question 76

Multiple Choice

Nell sells a passive activity with an adjusted basis of $45,000 for $105,000. Suspended losses attributable to this property total $45,000. The total gain and the taxable gain are:

• A) $60,000 total gain? $105,000 taxable gain.
• B) $10,000 total gain? $15,000 taxable gain.
• C) $60,000 total gain? $0 taxable gain.
• D) $60,000 total gain? $15,000 taxable gain.
• E) None of the above.

---

Definitions:

Polarized Light

Light waves that vibrate in a single plane, which can be used by some animals for navigation.

Monarch Butterflies

Migratory insects known for their distinct orange-and-black wing patterns and remarkable mass migration behavior.

UV Light

Ultraviolet light, a type of electromagnetic radiation with a wavelength shorter than that of visible light but longer than X-rays.

Monarch Butterflies

A species of butterfly known for its striking orange and black wings and remarkable long-distance migration from North America to central Mexico.