Janet has a taxable income of $50,500 from her salary and investment assets. She also owns 3 passive activities that have the following income (loss) for the year:

Passive Activity 1 $13,530

Passive Activity 2 $(17,040)

Passive Activity 3 $(8,720)

a. What is the effect of the passive activities on Janet's income?

Janet has a loss of $ .............. . She is allowed to deduct these losses . Her net taxable income is $ ........................

b. How much suspended loss does Janet have in each passive activity? Of Janet's $ ,,,,,,,,,,,,,,,,suspended loss, $.................... is allocated to Passive Activity 2 and $.............. to Passive Activity 3.