Question 1 of 75. An example of a passive activity is an interest in a O Limited partnership in which the partner does not participate in the business activities. Limited partnership in which the partner participates in the business activities. O Limited partnership in which the general partner participates in the business activities. General partnership in which the corporate partner participates in the business activities. Mark for follow up tollowing taxpayers is insolvent? Elizabeth, who owns assets with a fair market value of $7,500 and has no liabilities Gabe, who owns no assets, is unemployed and has no liabilities Alex, who owns assets with a fair market value of $12,000, has liabilities of $12,000, and retired last year. Maya, who owns assets with a fair market value of $6,000 and has total liabilities of $7,000. Mark for follow up Question 11 of 75. To exclude cancellation of debt from taxation, the debtor must have a negative net worth on what date? The day before the cancellation of debt. The day after the cancellation of debt. The year immediately before the cancellation of debt The year immediately after the cancellation of debt. Mark for follow up Question 12 of 75. Which of the following is NOT taken into account on the insolvency worksheet? The value of a pension plan. The assets exempt from bankruptcy. The separate assets of a spouse when filing jointly. The exempt assets beyond the reach of creditors. Mark for follow up Question 11 of 75. To exclude cancellation of debt from taxation, the debtor must have a negative net worth on what date? The day before the cancellation of debt. The day after the cancellation of debt. The year immediately before the cancellation of debt. The year immediately after the cancellation of debt. Mark for follow up