At-Risk Rules, Passive Losses (LO. 4, 5) Sidney and Gertrude own 40% of Bearcave Bookstore, an S corporation. The remaining 60% is owned by their son Boris. Sidney and Gertrude do not participate in operating or managing the store, and they invested $19,000 in the business when it opened in 2017. The bookstore reported the following net income (loss) for the years 2017 through 2020: 2017 2018 2019 2020 $(24,000) $(14,000) $(12,000) $5,000 a. Complete the table below to determine how much Sidney and Gertrude have at risk in Bearcave at the end of each year (2017-2020)? Note: Enter negative amounts beginning with a minus sign. If a amount is zero, enter "0". 2017 2018 2019 2020 Investment/Beginning Amount at-risk 19,000 4,600 X 0 $ 0 Share of income (loss) -14,400 X -8,400 x -7,200 X 3,000 x Utilized Suspended at-risk 3,000 X Ending at risk 4,600 X 0 0 0 x Suspended at-risk 7,200 X b. Complete the paragraphs below outlining Sidney and Gertrude's passive loss and at-risk situation. As Sidney and Gertrude do not materially participate in the bookstore, income generated from this activity allows them to only offset income (losses) from other passive activities 0 X due to the passive activity rules. This In 2017, Sidney and Gertrude's share of net income (loss) is 14,400 X of which $ 14,400 X is deductible. This leaves them with a suspended loss of $ continues through to 2020 . In that year, the amount of suspended loss Sidney and Gertrude may utilize according to passive activity rules is $ C. Assume that Sidney and Gertrude materially participate in Bearcave for each year. Complete the table below to outline the amount Sidney and Gertrude will recognize as income or loss from Bearcave for each year (2017- 2020). Note: Enter negative amounts beginning with a minus sign. If a amount is zero, enter "0". 2017 2018 2019 2020 Investment/Beginning Amount at-risk 19,000 Share of income (loss) -14,400 x -8,400 -7,200 X 3,000 X Ending at-risk 4,600 x DELHI DETTE Amount of income (loss) Allowable loss (at-risk) Suspended at-risk