John Mapp dies with passive activity property having an adjusted basis of $50,000, suspended losses of $20,000, and a fair market value at the date of Mr. Mapp's death of $77,000. How much suspended loss can be taken on Mr. Mapp's final Form 1040 return?

Question 1 options:

1)

$20,000

2)

$77,000

3)

$7,000

4)

$0