Jana reports the following income and loss:

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

Question

Jana reports the following income and loss:

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

Quizplus · Accepted Answer

D) Suspended losses total $40,000 ($60,000 - [$30,000 + $70,000]) and are allocated pro rata to the two loss activities. Activity B: $40,000 × ($30,000/$100,000) = $12,000; Activity C: $40,000 × ($70,000/$100,000) = $28,000.

Jana Reports the Following Income and Loss