Molly Grey (single) acquired a 30 percent limited partnership interest in Beau Geste LLP several years ago for $66,000. At the beginning of year 1, Molly has tax basis and an at-risk amount of $27,000. In year 1, Beau Geste incurs a loss of $209,500 and does not make any distributions to the partners.

In year 1, Molly's AGI (excluding any income or loss from Beau Geste) is $65,600. This includes $17,500 of passive income from other passive activities.

In year 2, Beau Geste earns income of $33,500. In addition, Molly contributes an additional $32,400 to Beau Geste during year 2. Molly's AGI in year 2 is $69,800 (excluding any income or loss from Beau Geste). This amount includes $15,480 in income from her other passive investments. Based on the above information, complete the requirements A1 to A3.