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
8. Correct answer: ; ; ; ; ; Your answer:
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
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?
9. Correct answer: ; ; ; Jointly Your answer:
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