Problem:
The following data is used for questions 1, 2 and 3: In the current year Alice reports $150,000 of salary income, $20,000 of income from activity X, and $35,000 and $15,000 losses from activities Y and Z, respectively. All three activities are passive with respect to Alice and are purchased during the current year.
Required:
Question: What is the amount of loss for Activity Y?
- $15,000
- $20,000
- $30,000
- $35,000
Note: Be sure to show how you arrived at your answer.