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Question 17 5 pts Several years ago, Sam acquired a hunting guide business which is a passive activity. Until last year, the activity was
Question 17 5 pts Several years ago, Sam acquired a hunting guide business which is a passive activity. Until last year, the activity was profitable. Sam's at-risk amount at the beginning of last year was $125,000. The activity produced losses of $50,000 last year, $40,000 in the current year, and $45,000 in the following year. During the same 3-year period, he didn't recognize passive income from any other activity. How much is suspended under the at-risk rules and the passive loss rules by the end of the third year (the following year)? $0 under the at-risk rules and $135,000 under the passive loss rules. $10,000 under the at-risk rules and $125,000 under the passive loss rules. $15,000 under the at-risk rules and $120,000 under the passive loss rules. $130,000 under the at-risk rules and $5,000 under the passive loss rules. O $135,000 under the at-risk rules and $0 under the passive loss rules.
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