Ling owns 3 passive investments.During the last two years,she has the following income and loss from each activity:
$\begin{array}{lrr}
& 2012 & 2013 \
\text { Activity 1 } & \$(14,000) & \$(6,000) \
\text { Activity 2 } & (6,000) & (1,000) \
\text { Activity 3 } & 8,000 & 12,000
\end{array}$
At the end of 2013 what is the amount of suspended loss allocated to Activity 2?

Question

Ling owns 3 passive investments.During the last two years,she has the following income and loss from each activity:
$\begin{array}{lrr} 
& 2012 & 2013 \
\text { Activity 1 } & \$(14,000) & \$(6,000) \
\text { Activity 2 } & (6,000) & (1,000) \
\text { Activity 3 } & 8,000 & 12,000
\end{array}$
At the end of 2013 what is the amount of suspended loss allocated to Activity 2?

Quizplus · Accepted Answer

Activity 2 has a total loss of $6,000 + $1,000 = $7,000. The suspended loss is limited to the amount of income from other activities, which is $8,000 + $12,000 = $20,000. Therefore, the suspended loss allocated to Activity 2 is $7,000 - $20,000 = $1,695.

Ling Owns 3 Passive Investments At the End of 2013 What Is the Amount of the Following