eBook 7 Correct answer neither active and portfolio income active income but

Ebook 7 correct answer neither active and portfolio

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Your answer: Problem 11­46 (LO. 3)In the current year, White, Inc., earns $400,000 from operations and receives $36,000 in dividends and interest from various portfolioinvestments. White also pays $150,000 to acquire a 20% interest in a passive activity that produces a total $200,000 loss.a.Assuming that White is a personal service corporation, how will these transactions affect its taxable income? b.Assuming that White is closely held but not a personal service corporation, how will these transactions affect its taxable income? eBook
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8. Correct answer: ; ; ; ; ; Your answer:
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Problem 11­52 (LO. 2, 3, 7)Five years ago Gerald invested $150,000 in a passive activity, his sole investment venture. On January 1, 2014, his amount at risk in theactivity was $30,000. His shares of the income and losses were as follows:YearIncome (Loss)2014($40,000)2015(30,000)201650,000If an answer is zero, enter "0".a.If losses were limitedonlyby the at­risk rules, how much can Gerald deduct in 2014 and 2015? b.Refer to the information in part (a) above. Assuming Gerald has $50,000 income in 2016, what is his taxable income from the activity in2016 underat­riskrules? eBook
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c.If losses were limited by the at­riskandpassive loss rules, how much would Gerald be able to deduct in 2014 and 2015? d.Consideringbothat­risk and passive loss rules, what is the amount of Gerald's suspended passive losses at the end of 2016? $ At the end of 2016, what is the amount of Gerald's adjusted basis in the activity?
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9. Correct answer: ; ; ; Jointly Your answer:
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