6. Ken has a $40,000 loss from an investment in a partnership in which he does not materially participate. He paid $30,000 for his interest. How much of the loss is disallowed by the at-risk rules? How much is disallowed by the passive activity loss rules? 7. Jerome and Kelly are married, file a joint tax return, have AGI of $82,500, and have two children. Devona is beginning her freshman year at State University during the fall of 2019, and Arethia is beginning her senior year at Northeast University during the fall of 2019 after having completed her junior year during the spring of that year. Both Devona and Arethia are claimed as dependents on their parents' tax return. Devonia's qualifying tuition expenses and fees total $4,000 for the fall semester and Arethia's qualifying tuition expenses and fees total $6,200 for each semester during 2019. Full payment is made for the tuition and related expenses for both children during each semester. Calculate the American Opportunity credit available to Jerome and Kelly for 2019. 8. What is the difference between a tax deduction and a tax credit