EXAMPLE 1- TAXPAYER HAS 3 PASSIVE ACTIVITIES WITH THE FOLLOWING RESULTS FOR THE CURRENT YEAR(YEAR 1): ACTIVITY A ($10,000), ACTIVITY B ($15,000), AND ACTIVITY C $6,000TAXPAYER CAN DEDUCT ONLY $6,000 OF THE PASSIVE LOSSES SINCE PASSIVE LOSSES ARE DEDUCTIBLE ONLY UP TO PASSIVE INCOME WITH THE FOLLOWING LOSS CARRYFORWARDS TO YEAR 2: $19,000 DISALLOWED LOSSES X 10/25= ($7,600) LOSS CARRIED FORWARD FROM ACITIVITY A $19,000 DISALLOWED LOSSES X 15/25= ($11,400) LOSS CARRIED FORWARD FROM ACTIVITY B

can someone explain this please