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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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
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