Question
Ling owns 3 passive investments. During the last two years, she has the following income and loss from each activity: 2014 2015 Activity 1 $(14,000)
Ling owns 3 passive investments. During the last two years, she has the following income and loss from each activity:
|
| 2014 | 2015 |
| Activity 1 | $(14,000) | $(6,000) |
| Activity 2 | (6,000) | (1,000) |
| Activity 3 | 8,000 | 12,000 |
At the end of 2015 what is the amount of suspended loss allocated to Activity 2?
|
| a. | $1,695 |
|
| b. | $1,815 |
|
| c. | $5,185 |
|
| d. | $5,305 |
|
| e. | $7,000 |
According to the test bank 2016, the answer is (a). Please explain. Thank you!
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Principles Of Accounting 2
Authors: OpenStax
1st Edition
0357366808, 9780357366806
