Sarah has investments in four passive activity partnerships purchased several years ago. Last year, the income and losses were as follows:

Activity A $10,000

Activity B (5,000)

Activity C (25,000)

Activity D ($20,000)

In the current year, Sarah sold her interest in Activity D for a $19,000 gain, Activity D, which had been profitable untill last year, had a current loss of $1000. How will the slae of Activity D affect Sarah's taxable income in the current year?

The amount of suspended losses carried forward to the year of the sale is ___$ 1,000____.

What amount of the suspended losses is allocated to Acitivity D? ___$2,000_________.

The net gain form the sale of Activity D(before any passive losses form the other activities) is _______.

How much, if any, of this net gain may be used to absorb passive losses from other activities? ______.