Five years ago, Gerald invested $150,000 in a passive activity, his sole investment venture. On January 1, 2018, his amount at risk in the activity was $30,000. His shares of the income and losses were as follows: Year 2018 Income (Loss) ($40,000) (30,000) 50,000 2019 2020 Gerald holds no suspended at-risk or passive activity losses at the beginning of 2018. If an answer is zero, enter "O". a. If losses were limited only by the at-risk rules, how much can Gerald deduct in 2018 and 20197 Suspended Year Loss 2018 ($40,000) $ 2019 ($30,000) Allowed 30,000 $ 10,000 30,000 40,000 Total Feedback b. Refer to the information in part(a) above. If losses were limited by the at-risk and the passive activity loss rules, how much would Gerald be able to deduct in 2018 and 20197 of the allowable at-risk loss for 2018, Gerald may deduct the allowable at-risk loss from 2019, Gerald may deduct s 40,000 X in 2018 due to the passive loss rules and of o in 2019 due to the passive loss rules. Feedback c. Assuming Gerald has $50,000 income in 2020, (and considering both at-risk and passive activity loss rules), what is the amount of Gerald's suspended losses at the end of 20207 . Suspended under the at-risk rules: 10,000 X . Suspended under the passive activity loss rules: 40,000 X What is his taxable income for 20207 $ 50,000 X At the end of 2020, what is the amount of Gerald's adjusted basis in the activity