Fundamentals of Taxation 2011 4th Edition by Ana Cruz, Debra Prendergast, Dan Schisler, Michael Deschamps

Exercise 33

Samuel is a CPA and earns $150,000 from his practice in the current year. Assume he is sufficiently at risk in each of the three partnerships. He also has an ownership interest in three passive activities. In the current tax year, the activities had the following income and losses: Partnership A $40,000
Partnership B (32,000)
Partnership C (24,000)
What is Samuel's adjusted gross income for the current year?
A) $134,000.
B) $144,000.
C) $150,000.
D) $190,000.