art 1. Multinle Choics te questions worth 2 points each, 10 total points possible) dendor began producing picture films in the current year. During the current year, he the following contributions to his business: mad Cash 15,000 ..30,000 uipment (adjusted basis to Condor).. (fair market value)... Loan from First Bank that he personally promised to repay.20,0 Loan from Second Bank for which he is not personally liable but that is secured by a mortgage on his home... 0,000 -Loan from Third Bank for which he is not personally liable but that is secured by equipment used in his busins...5,00 Under the at-risk rules, Mr. Condor is considered to be at risk in the amount of A. $45,000 B. $55,000 C. $60,000 D. $80,000 17, Grace loaned her friend Paula $12,000 to invest in various stocks. Paula sigme e to repay the principal with interest. Unfortunately the market for that industry s plunged, and Paula incurred large losses. In 2018, Paula declared personal bankruptcy and race was unable to collect any of her loan. Grace had no other gains or losses last year this year. The result is 2. In 20 sector or A. Grace deducts a business bad debt of $12,000 in 2018. Grace deducts a $12,000 nonbusiness bad debt as a short-term capital loss in 2018. Grace deducts a $3,000 nonbusiness bad debt as a short-term capital loss in 2018 and carries $9,000 over to subsequent years. B. C. D. Grace deducts a business bad debt of $3,000 in 2018 and carries $9,000 over to subsequent years. ire totally destroyed office equipment and furniture which Monica uses in her busine equipment had an adjusted basis of $15,000 and a FMV of $10,000 before the fire. The furniture's adjusted basis was $5,000 and its FMV was $2,000 before the fire. Monica's AGilG the year is $60,000. Monica does not have insurance on the destroyed assets. How much is Monica's deductible casualty loss? s. he A. $5,900 B. $12,000 C. $13,900 D. $20,000 4. Justin has AGI of S110,000 before considering his $30,000 loss from rental property, whic he actively manages. How much of the rental loss can Justin deduct this year? A. $10,000 B. $20,000 C. $25,000 D. $30,000 5. Jana reports the following income and loss: $120,000 60,000 (30,000) (70,000) Salary Income from activity A Loss from activity B Loss from activity C Activities A, B, and C are all passive activities. Based on this information, Jana has the following suspended loses A. Activity B ActivityC $30,000 $70,000 B. Activity B Activity C $0 $0 C. Activity BActivity C $18,000 $42,000 D. Activity Activity B $12,000 ems (2 problem worth 20 total possible poin pro (10 points) In 2018, Robert was laid off from his job as a retail salesperson restaurant business with his wife. Robert's filing status is married filing joint wife report the following information for their 2018 tax year: Part II. Problems and openeda . and his .$s68,000 -Restaurant income. Restaurant expenses. Salary from retail sales jo.. Nonbusiness long-term capital gain8,50 Nonbusiness long-term capital los...11, Interest income from investments 1,700 Casualty loss after $100 floor due to hurricane damage - event was declared a federal disastetr.. 15,000 Mortgage interest expense on residenc... .7,6 ..119,000 . 17,000 00) 6,000 Compute the couple's taxable loss and their net operating loss for 2018. 2. (10 points) During 2018, Dennis and I and Lisa, a married couple, purchased two separate ing the activities for 2018 and 2019 is as follows:Paissive ring 2018, Dennis 2018 Activity Income/Loss 2012 Activity Income/Loss (86,400) 36,000 (28,800) 72,000 The 2018 losses are suspended losses for that year that carry also reports salary income of $235,200 and interest and dividend income of $12,500. Compute the amount (if any) of losses attributable to activities A an forward. During 2019, the coup le and B that are deductible in 2019 and es A any suspended losses that must be carried forward to 2020. Neither activity is a rental real estate activity. What is the couple's AGI for 2019