Answer:
c. $9,000
Explanation:
a. Adjusted basis in the passive activity: $0
b. Rhonda is facing a net loss of $12,000 from passive operation.
Since it uses $7,500 of the loss to. the total at risk to $0.
c. This year passive loss suspended $7,500
The loss suspended in the prior year is $1,500
So, Therefore, the suspended passive loss passed over to the following years total $9,000
Now, Suspended passive loss $9,000 ($7,500 suspended loss in current year + $1,500 suspended loss in the previous year)
An example would be
The Cost of flour for a baker
To answer the question above as to Jean's explanation on Say's Law or The Law of Market.. I agree that "if there is a surplus of goods, there must be unmet of demand for others". Jean's explanation is more of a Capitalist style of management.