During the year, Watters has the following:

$$16,000$ of taxable income from Activity A $($a passive activity$).$

$$10,000$ of loss from Activity B $($a passive activity$).$

$$3,000$ of taxable income from Activity C $($a passive activity$).$

Watters has $$30,000$ of passive losses from Activity $C$ which are carried over to the current tax year $($i$.$e$.,$ suspended passive losses$).$

During the current year, Watters sells Activity C for a taxable gain of $$20,000.$

Watters has salary income of $$95,000$ for the year.

Watters does not group his activities.

Tucker's AGI for the year is:

$$90,000$

$$89,000$

$$85,000$

$$94,000$