Sandra Acquired a Passive Activity Three Years Ago

question 75

Multiple Choice

Sandra acquired a passive activity three years ago.Until last year, the activity was profitable and her at-risk amount was $300,000.Last year, the activity produced a loss of $100,000, and in the current year, the loss is $50,000.Assuming Sandra has received no passive income in the current or prior years, her suspended passive loss from the activity is:

• A)$90,000 from last year and $50,000 from the current year.
• B)$100,000 from last year and $50,000 from the current year.
• C)$0 from last year and $0 from the current year.
• D)$50,000 from the current year.
• E)None of the above.

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Definitions:

Industrial Unions

Labor unions that organize workers across entire industries, rather than by craft or trade, to collectively bargain for better terms of employment.

Craft Unions

Unions composed of workers specialized in a particular craft or trade, focusing on specific job skills and worker rights within that profession.

Monopsony Power

A market condition where there is only one buyer for a product or service, giving that buyer considerable control over prices.

Professional Athletes

Individuals who compete in sporting activities at the highest level and receive payment for their performance and participation.