307exam3sample - Name: _ Class: _ Date: _ ID: A Chapter 11,...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Name: ________________________ Class: ___________________ Date: __________ ID: A 1 Chapter 11, 13, and 14 Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. ____ 1. Which of the following decreases a taxpayer’s at-risk amount? a. Cash and the adjusted basis of property contributed to the activity. b. Amounts borrowed for use in the activity for which the taxpayer is personally liable or has pledged as security property not used in the activity. c. Taxpayer’s share of amounts borrowed for use in the activity that is qualified nonrecourse financing. d. Taxpayer’s share of the activity’s income. e. None of the above. ____ 2. Josh has investments in two passive activities. Activity A, acquired three years ago, produces income of $30,000 this year. Activity B, acquired two years ago, produces a loss of $50,000. What is the amount of Josh’s suspended loss with respect to these activities for the year? a. $0. b. $18,000. c. $20,000. d. $50,000. e. None of the above. ____ 3. Jill acquired a passive activity several years ago which, until 2004, was profitable. In 2004, the activity produced a loss of $40,000, and in 2005, the loss was $20,000. Jill had no passive income in 2004 or 2005. How much is her suspended loss from the activity? a. $36,000 from 2004 and $20,000 from 2005. b. $40,000 from 2004 and $20,000 from 2005. c. $0 from 2004 and $0 from 2005. d. None of the above. ____ 4. Nell sells a passive activity with an adjusted basis of $45,000 for $105,000. Suspended losses attributable to this property total $45,000. The total gain and the taxable gain are: a. $60,000 total gain; $105,000 taxable gain. b. $10,000 total gain; $15,000 taxable gain. c. $60,000 total gain; $0 taxable gain. d. $60,000 total gain; $15,000 taxable gain. e. None of the above.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Name: ________________________ ID: A 2 ____ 5. 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). Activity A ($30,000) Activity B (20,000) Activity C 25,000 Net passive loss ($25,000 ) Matt’s suspended losses are as follows: a. $25,000 is allocated to C; $0 to A and B. b. $12,500 is allocated to A; $12,500 to B. c. $15,000 is allocated to A; $10,000 to B. d. $8,333 is allocated to A, B, and C. e. None of the above. ____ 6. White Corporation, a personal service corporation, has $150,000 of passive losses, $120,000 of active business income, and $30,000 of portfolio income. How much of the passive loss may White Corporation deduct? a. $0. b. $30,000. c. $120,000. d. $150,000. e. None of the above. ____ 7. Tara owns a shoe store and a bookstore. Both businesses are operated in a mall. She also owns a restaurant across the street and a jewelry store several blocks away. Which of the following statements is correct ? a.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/28/2009 for the course ECONOMY 5646 taught by Professor Korn during the Spring '09 term at Abraham Baldwin Agricultural College.

Page1 / 18

307exam3sample - Name: _ Class: _ Date: _ ID: A Chapter 11,...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online