Joy reports the following income and loss:

Activities A,B,and C are all passive activities.
Based on this information,Joy has the following suspended losses:

Question

Joy reports the following income and loss:

Activities A,B,and C are all passive activities.
Based on this information,Joy has the following suspended losses:

Quizplus · Accepted Answer

A) Suspended losses total $30,000 ($60,000 - [$35,000 + $55,000]) and are allocated pro rata to the two loss activities. Activity B: $30,000 × ($35,000/$90,000) = $11,667; Activity C: $30,000 × ($55,000/$90,000) = $18,333.

Joy Reports the Following Income and Loss