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Passive Losses. In 2019, Mark purchased two separate activities. Information regarding these activities for 2019 and 2020 is as follows: Activity 2019 Status 2020 Income (Loss) Activity Status Income (Loss) A Passive ($24,000) A Active $10,000 B Passive ( 8,000) B Passive 20,000 The 2019 losses were suspended losses for that year. During 2020, Mark also reports salary income of $120,000 and interest and dividend income of $20,000. Compute the amount (if any) of losses attributable to Activities A and B that are deductible in 2020 and any suspended losses carried to 2021.

Passive Losses. In 2019, Mark purchased two separate activities. Information regarding these activities for 2019 and 2020 is as follows: Activity 2019 Status 2020 Income (Loss) Activity Status Income (Loss) A Passive ($24,000) A Active $10,000 B Passive ( 8,000) B Passive 20,000 The 2019 losses were suspended losses for that year. During 2020, Mark also reports salary income of $120,000 and interest and dividend income of $20,000. Compute the amount (if any) of losses attributable to Activities A and B that are deductible in 2020 and any suspended losses carried to 2021.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Passive Losses. In 2019, Mark purchased two separate activities. Information regarding these activities for 2019 and 2020 is as follows: Activity 2019 Status 2020 Income (Loss) Activity Status Income (Loss) A Passive ($24,000) A Active $10,000 B Passive ( 8,000) B Passive 20,000 The 2019 losses were suspended losses for that year. During 2020, Mark also reports salary income of $120,000 and interest and dividend income of $20,000. Compute the amount (if any) of losses attributable to Activities A and B that are deductible in 2020 and any suspended losses carried to 2021.
Transcribed Image Text:Passive Losses. In 2019, Mark purchased two separate activities. Information regarding these activities for 2019 and 2020 is as follows: Activity 2019 Status 2020 Income (Loss) Activity Status Income (Loss) A Passive ($24,000) A Active $10,000 B Passive ( 8,000) B Passive 20,000 The 2019 losses were suspended losses for that year. During 2020, Mark also reports salary income of $120,000 and interest and dividend income of $20,000. Compute the amount (if any) of losses attributable to Activities A and B that are deductible in 2020 and any suspended losses carried to 2021.
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