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Fred's at risk amount in a passive activity is $50,000 at the beginning of the current year. His current loss from the activity is $60,000.
Fred's at risk amount in a passive activity is $50,000 at the beginning of the current year. His current loss from the activity is $60,000. He had no passive activity income during the year. At the end of the year, which of the following statements is incorrect?
a) Fred has a loss of $50,000 suspended under the passive loss rule.
b) Fred has an at risk amount in the activity of $0.
c) Fred has a loss of $10,000 suspended under the risk rules.
d) Fred has a loss of $60,000 suspended under the passive loss rules.
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