Matt has three passive activities and has at-risk amounts in excess of $100,000 for each.During the year,the activities produced the following income (losses).
$\begin{array}{lr}
\text { Activity A } & (\$ 60,000) \
\text { Activity B } & (40,000) \
\text { Activity C } & 75,000 \
\text { Net passive loss } & (\$ 25,000) \
\text { Matt's suspended losses are as follows: } &
\end{array}$

Question

Matt has three passive activities and has at-risk amounts in excess of $100,000 for each.During the year,the activities produced the following income (losses). 
$\begin{array}{lr}
\text { Activity A } & (\$ 60,000) \
\text { Activity B } & (40,000) \
\text { Activity C } & 75,000 \
\text { Net passive loss } & (\$ 25,000) \
\text { Matt's suspended losses are as follows: } &
\end{array}$

Quizplus · Accepted Answer

The net passive loss of $25,000 is allocated proportionally to the activities with losses. Activity A's loss is $60,000 and Activity B's loss is $40,000. The allocation is $15,000 to A and $10,000 to B based on their respective loss proportions.

Matt Has Three Passive Activities and Has At-Risk Amounts in Excess