Grace acquired an activity four years ago. The loss from the activity is $50,000 in the current year (at-risk basis of $40,000 as of the beginning of the year). Without considering the loss from the activity, she has gross income of $140,000. If the activity is a convenience store and Grace is a material participant, what is the effect of the activity on her taxable income?

Grace may deduct $? of the $50,000 loss due to the passive activity loss OR at - risk OR both rules.

$? is suspended.

Therefore, Graces income for tax purposes is $?