Alfonso sells a passive activity in the current year for $800,000. His adjusted basis in the activity is $200,000,
and he uses the installment method of reporting the gain. The activity has suspended losses of $44,000. Alfonso receives $400,000 in the year of sale.
a. What is his gross profit ratio on the sale?
b. His recognized gain for the current year is $.
c. Alfonso can currently deduct $ of suspended losses.