Seojun acquired an activity several years ago, and in the current year, it generates a loss of $50,000. Seojun has AGI of $140,0

Question

3 years ago

8

Seojun acquired an activity several years ago, and in the current year, it generates a loss of $50,000. Seojun has AGI of $140,0

00 before considering the loss from the activity. If the activity is a bakery and Seojun is not a material participant, what is his AGI

Business

1 answer:

ahrayia [7] · Answer 1 · 2022-04-02T01:18:52+03:00

Answer:

Seojun's Adjusted Gross income is $140,000.

Explanation: Adjusted Gross income(AGI) is a term used in Financial accounting to describe the total amount of gross income remaining after certain deductions have been made to the Gross income of a business entity over a given period of time.

Since Seojun is not a Material participant,the $50,000 loss can not be considered in calculating Seojun's Adjusted Gross income.