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

If an amount is zero, enter "0".

a. Adjusted basis in this investment is $35,000. Losses from prior years that were not deductible due to the passive activity loss restrictions total $40,000.

The taxable gain or deductable loss is _________.

The suspended losses at the end of the year are $_________.

b.

Adjusted basis in this investment is $75,000. Losses from prior years that were not deductible due to the passive activity loss restrictions total $40,000.

The taxable gain or deductable loss is $_______.

The suspended losses at the end of the year are $____________.

c.

Adjusted basis in this investment is $75,000. Losses from prior years that were not deductible due to the passive activity loss restrictions total $40,000. In addition, suspended credits total $10,000.

The taxable gain or deductable loss is $_______.

The suspended losses at the end of the year are $_______.

The suspended credits at the end of the year are carried back, carried forward, or lost.