Using Research Problem 2 found on page 11-34 in the textbook, prepare an e-mail to Bridget discussing your reaction to her passive activities.

e years ago Bridget decided to purchase a limited part-nership interest in a fast-food restaurant conveniently located near the campus of Southeast State University. The general partner of the restaurant venture promised her that the investment would prove to be a winner. During the process of capi-talizing the business, $2,000,000 was borrowed from Northside Bank; however, each of the partners was required to pledge personal assets as collateral to satisfy the bank loan in the event that the restaurant defaulted. Bridget pledged shares of publicly traded stock (worth $200,000, basis of $75,000) to satisfy the banks requirement.The restaurant did a good business until just recently, when flagrant health code violations were discovered and widely publicized by the media. As a result, business has declined to a point where the restaurants continued existence is doubtful. In addition, the $2,000,000 loan is now due for payment. Because the restaurant can-not pay, the bank has called for the collateral provided by the partners to be used to satisfy the debt. Bridget sells the pledged stock for $200,000 and forwards the proceeds to the bank. Bridget believes that her share of the restaurants current and suspended passive activity losses can offset the $125,000 gain from the stock sale. As a result, after netting the passive activity losses against the gain, none of the gain is subject to tax.How do you react to Bridgets position?