a)

b)

c)

d)

Farell is a member of Sierra Vista LLC. Although Sierra Vista is involved in a number of different business ventures, it is not currently involved in real estate either as an investor or as a developer. On January 1, year 1, Farell has a $105,000 tax basis in his LLC interest that includes his $93,000 share of Sierra Vista's general liabilities. By the end of the year, Farell's share of Sierra Vista's general liabilities have increased to $105,000. Because of the time he spends in other endeavors, Farell does not materially participate in Sierra Vista. His share of the Sierra Vista losses for year 1 is $127,000. As a partner in the Riverwoods Partnership, he also has year 1, Schedule K1 passive income of $9,000. Farell is single and has no other sources of business income or loss. Note: Leave no answer blank. Enter zero if applicable. Required: a-1. Determine how much of the Sierra Vista loss Farell will currently be able to deduct on his tax return for year 1. a-2. List the losses suspended due to tax-basis, at-risk, and passive activity loss limitations. b-1. Determine how much of the Sierra Vista loss he will ultimately be able to deduct on his tax return for year 1 . b-2. List the losses suspended due to tax-basis, at-risk, and passive activity loss limitations. c-1. Determine how much of the Sierra Vista loss he will ultimately be able to deduct on his tax return for year 1 . c-2. List the losses suspended due to tax-basis, at-risk, and passive activity loss limitations. d. Assuming the original facts and that Farell is deemed to be an active participant in Sierra Vista, and he also has a $278,000 loss from a sole proprietorship, determine how much total trade or business loss Farell will deduct on his return in year 1