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During the current year, Laura realizes a $9,000 of income from passive activity A, a $7,000 loss from passive activity B, and $12,000 of income
During the current year, Laura realizes a $9,000 of income from passive activity A, a $7,000 loss from passive activity B, and $12,000 of income from passive activity C. Laura has a salary of $100,000 and a $25,000 suspended loss carryover from activity C from prior years. During the year she sells activity C to an unrelated person realizing a taxable gain of $10,000. What is the cumulative effect of the passive activities on Laura's income?
A. (1,000)
B. (11,000)
C. 0
D. 14,000
E. None of the above
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