In 2010,Glenda Had a $97,000 Loss on a Passive Activity

question 26

Multiple Choice

In 2010,Glenda had a $97,000 loss on a passive activity.None of the loss is attributable to AMT adjustments or preferences.She has no other passive activities.Which of the following statements is correct?

• A)In 2010,Glenda can deduct $97,000 for regular income tax purposes and for AMT purposes.
• B)Glenda will have a $97,000 tax preference in 2010 as a result of the passive activity.
• C)For regular income tax purposes,none of the loss is allowed in 2010.
• D)In 2010,Glenda will have a positive adjustment of $25,000 as a result of the passive loss.
• E)None of the above.

---

Definitions:

Target Tissues

Specific tissues or organs that are affected by hormones, drugs, or other active substances due to the presence of specific receptors.

Somatic Motor Nervous System

A part of the peripheral nervous system that carries motor commands from the central nervous system to the skeletal muscles.

Inhibits Heart Rate

Inhibiting heart rate refers to various mechanisms or actions that decrease the frequency at which the heart beats, often through the action of specific neurotransmitters or hormones.

Parasympathetic

One of the two divisions of the autonomic nervous system, often referred to as the "rest and digest" system, which conserves energy as it slows the heart rate, increases intestinal and gland activity, and relaxes sphincter muscles in the gastrointestinal tract.