Sale of passive activity and suspended losses lo 6

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Sale of Passive Activity and Suspended Losses (LO. 6)Leon sells his interest in a passive activity for $159,000. Determine the tax effect of the sale based on each of the following independent facts. If an amount is zero, enter "0".a. Adjusted basis in this investment is $55,650. Losses from prior years that were not deductible due to the passive loss restrictions total
b. Assume the same sales price in part (a) but the adjusted basis in this investment is $119,250. Losses from prior years that were not
c. Assume the same sales price in part (a) and the adjusted basis in this investment is $119,250. Losses from prior years that were not
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Problem 6-19Passive Losses of Personal Service Corporation (LO. 6)Ash, Inc., a closely held personal service corporation, has $100,000 of passive losses. In addition, Ash has $80,000 of active business income and $20,000 of portfolio income. How much of the passive loss may Ash use to offset the other types of income?
Your answer:Problem 6-20Passive Losses of Corporations (LO. 6)In the current year, White, Inc., earns $400,000 from operations and receives $36,000 in dividends and interest on various portfolio investments. White also pays $150,000 to acquire a 20% interest in a passive activity that produces a $200,000 loss.a. Assuming that White is a personal service corporation, how will these transactions affect its taxable income?

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