Josh has investments in two passive activities. Activity A (acquired three years ago)
produces income of $30,000 this year, while Activity B (acquired two years ago) produces a
loss of $50,000. What is the amount of Josh’s suspended loss for the year?
• Question 12
Rick, a computer consultant, owns a separate business (not real estate) in which he
participates. He has one employee who works part-time in the business.
• Question 13
Charles owns a business with two separate departments. Department A produces $100,000
of income and Department B incurs a $60,000 loss. Charles participates for 550 hours in
Department A and 100 hours in Department B. He has full-time employees in both
departments.
• Question 14
Sandra acquired a passive activity three years ago. Until last year, the activity was
profitable and her at-risk amount was $300,000. Last year, the activity produced a loss of
$100,000, and in the current year, the loss is $50,000. Assuming Sandra has received no
passive income in the current or prior years, her suspended passive loss from the activity
is:
• Question 15
Nell sells a passive activity with an adjusted basis of $45,000 for $105,000. Suspended losses
attributable to this property total $45,000. The total gain and the taxable gain are:
ACC 307 Final Exam Solution Part 2
• Question 1
An employer calculates the amount of income tax withheld from salary or wages based on
the information an employee provides on the following form:
• Question 2