Ken paid $40,000 for his interest in a partnership in which he does not materially participate. He has a $55,000 loss from this investment this year. He has no passive income this year. He has a total of $60,000 active and portfolio income this year.

a. How much of the $55,000 loss is deductible under the at-risk rules? b. How much of the $55,000 loss is suspended under the at-risk rules?

c. How much of the $55,000 loss is deductible under the passive activity rules?

d. How much of the $55,000 loss is suspended under the passive activity rules?

e. What is the total suspended loss from the activity at the end of the year?

f. What is Ken's adjusted gross income this year?