Kwame has investments in two passive activities. Activity A, acquired three years ago, produces income...
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Accounting
Kwame has investments in two passive activities. Activity A, acquired three years ago, produces income in the current year of $60,000. Activity B, acquired last year, produces a loss of $100,000 in the current year. At the beginning of this year, Kwame's at-risk amounts in Activities A and B are $10,000 and $100,000, respectively. What is the amount of Kwame's suspended passive activity loss with respect to these activities at the end of the current year?
a.$0
b.$100,000
c.$40,000
d.$36,000
(Hint: $40,000 is not the answer)
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