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: Activities A,B,and