Problem 6-32 (Algorithmic) (LO. 5, 6, 8) Five years ago, Gerald invested $134,000 in a passive activity, his sole investment venture. On January 1, 2021, his amount at risk in the activity was $26,800. His shares of the income and losses were as follows: Year 2021 2022 2023 Income (Loss) ($40,200) (26,800) 107,200 Gerald holds no suspended at-risk or passive activity losses at the beginning of 2021. If an answer is zero, enter "0". a. If losses were limited only by the at-risk rules, how much can Gerald deduct in 2021 and 2022? Year Loss 2021 ($40,200) 2022 ($26,800) Total Feedback Allowed 30,000 X Suspended 10,200 X 0 0 X 10,200 X Check My Work The at-risk rules limit the deductibility of losses from business and income-producing activities. These rules, which apply to individua held corporations, are designed to prevent taxpayers from deducting losses in excess of their actual economic investment in an activ passive activity loss rules ( 469) operate by requiring taxpayers to classify their income and losses into various categories. Then th the extent to which losses in the passive category can be used to offset income in the other categories. b. Refer to the information in part (a) above. If losses were limited by the at-risk and the passive activity loss rules, how much would Gerald be able to deduct in 2021 and 2022?