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Leon sells his interest in a passive activity for $100,000. Determined the tax effect of the sale based on each of the following independent facts:

Leon sells his interest in a passive activity for $100,000. Determined the tax effect of the sale based on each of the following independent facts: Adjusted basis in this investment is $35,000. Losses from prior years that were not deductible due to the passive loss restrictions totla $40,000. The (deductible loss, taxable gain) is __________. The suspended losses at the end of the year are ___________

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