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22 December, 07:19

During the year, Mark reports $90,000 of active business income from his law practice. He also owns two passive activities. From Activity A, he earns $20,000 of income, and from Activity B, he incurs a $30,000 loss. As a result, Mark reports AGI of Group of answer choicesa. $80,000

b. $90,000 with a $10,000 loss carryopver

c. $90,000 with a $30,000 carryover

d. $110,000 with a $30,000 carryover

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Answers (1)
  1. 22 December, 07:43
    0
    b. $90,000 with a $10,000 loss carryover

    Explanation:

    Given that

    Active business income = $90,000

    From Activity A, the income earns = $20,000

    From Activity B, the loss incurs = $30,000

    So by considering the above information, the Adjusted gross income should be

    The $90,000 should be recorded

    Plus, the $10,000 loss should also be carryover

    The $10,000 loss is come from

    = $20,000 - $30,000

    = - $10,000
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