In the current year Kent reports income and losses from the following activities: View the data. Activities X, Y, and Z are all passive with respect to Kent. Activity Z has $39,000 in passive losses which are carried over from the prior year. In the current year Kent sells activity Z for a taxable gain of $20,000. Read the requirements. Requirement a. What is the amount of loss that Kent may deduct and what is the amount that must be carried over in the current year? (Enter a "0" for amounts with a zero balance.) Loss deductible in current year Amount carried over to next year Requirement b. Based solely on the amounts above, compute Kent's AGI for the current year. Kent's AGI for the current year = Data Activity X $ 40,000 Activity Y (17,000) Activity Z (15,000) Salary 95,000 - ☑
In the current year Kent reports income and losses from the following activities: View the data. Activities X, Y, and Z are all passive with respect to Kent. Activity Z has $39,000 in passive losses which are carried over from the prior year. In the current year Kent sells activity Z for a taxable gain of $20,000. Read the requirements. Requirement a. What is the amount of loss that Kent may deduct and what is the amount that must be carried over in the current year? (Enter a "0" for amounts with a zero balance.) Loss deductible in current year Amount carried over to next year Requirement b. Based solely on the amounts above, compute Kent's AGI for the current year. Kent's AGI for the current year = Data Activity X $ 40,000 Activity Y (17,000) Activity Z (15,000) Salary 95,000 - ☑
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:In the current year Kent reports income and losses from the following activities:
View the data.
Activities X, Y, and Z are all passive with respect to Kent. Activity Z has $39,000 in passive losses which are carried
over from the prior year. In the current year Kent sells activity Z for a taxable gain of $20,000.
Read the requirements.
Requirement a. What is the amount of loss that Kent may deduct and what is the amount that must be carried over in
the current year? (Enter a "0" for amounts with a zero balance.)
Loss deductible in current year
Amount carried over to next year
Requirement b. Based solely on the amounts above, compute Kent's AGI for the current year.
Kent's AGI for the current year =
Data
Activity X
$
40,000
Activity Y
(17,000)
Activity Z
(15,000)
Salary
95,000
-
☑
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