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Alfonso sells a passive activity in the current year for $800,000. His adjusted basis in the activity is $200,000, and he uses the installment method
Alfonso sells a passive activity in the current year for $800,000. His adjusted basis in the activity is $200,000, and he uses the installment method of reporting the gain. The activity has suspended losses of $44,000. Alfonso receives $400,000 in the year of sale.
Enter as a percentage. For example, .35 would be entered as "35". %
a. What is his gross profit ratio on the sale? _________________%
b. His recognized gain for the current year is $. ____________________
c. Alfonso can currently deduct $______________________ of suspended losses.
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