2. Emily earns a salary of $150,000, and invests $60,000 for a 20% interest in a passive activity. Operations of the activity result in a loss of $400,000, of which Emily's share is $80,000. How is her loss characterized? a. $60,000 is suspended under the passive loss rules and $20,000 is suspended under the at-risk rules. b. $60,000 is suspended under the at-risk rules and $20,000 is suspended under the passive loss rules. c. $80,000 is suspended under the passive loss rules. d. $80,000 is suspended under the at-risk rules. e. None of the above. 3. Ramon incurred $83,100 of interest expense related to his investments in 2011. His investment illcome included $34,500 of interest and a $37,500 net capital gain on the sale of securities. What is the maximum amount of Ramon's investment interest expense deduction in 2011? a. $19,500. b. $34,500. c. $72,000. d. $83,100. e. None of the above. Robert and Diane, husband and wife? live in Pennsylvania, a common law state. They purchased land as joint tenants in 2007 for $300,000. In 2011, Diane dies and bequeaths her share of the land to Robert. The land has a fair market value of $450,000. What is Robert's adjusted basis for the land? a. $300,000. b. $375,000. c. $450,000. d. $750,000. e. None of the above