If activity 1 were sold at an 18000 gain what would be the


This year Robert had the following income and losses from four passive activities:

Activity 1 ........($20,000)
Activity 2 ........($10,000)
Activity 3 ........($ 5,000)
Activity 4 ........$33,000
Activity 4 had $10,000 of passive losses that are carried over from a prior year. Robert also had wages of $110,000. 

a. How much income or loss does Robert have from the four activities? 

b. How are the suspended PALs allocated.

c. If Activity 1 were sold at an $18,000 gain, what would be the total income or loss from the four activities?  

Solution Preview :

Prepared by a verified Expert
Managerial Economics: If activity 1 were sold at an 18000 gain what would be the
Reference No:- TGS01291908

Now Priced at $12 (50% Discount)

Recommended (96%)

Rated (4.8/5)