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Hatshy [7]
3 years ago
12

Several years ago, Joy acquired a passive activity. Until 2018, the activity was profitable. Joy's at-risk amount at the beginni

ng of 2018 was $250,000. The activity produced losses of $100,000 in 2018, $80,000 in 2019, and $90,000 in 2020. During the same period, no passive activity income was recognized. How much is suspended under the at-risk rules and the passive activity loss rules at the beginning of 2021
Business
1 answer:
Galina-37 [17]3 years ago
3 0

Answer:

b. $20,000: $250,000

Explanation:

The computation is shown below:

The passive activity rules at the opening of 2021 would be equivalent to the amount given i.e. $250,000

And, the suspended amount would be

= $100,000 + $80,000 + $90,000 - $250,000

= $270,000 - $250,000

= $20,000

Hence, the correct option is b.

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Answer:

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Explanation:

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5 0
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Fiat money has :
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McCann Co. has identified an investment project with the following cash flows.
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Answer:

The present value at 11% is $3,902.13,$3,479.85  at 16% and $2,615.57  at 30%

Explanation:

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Where FV is the future value of cash flows such as the ones given in the question

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Find attached spreadsheet for detailed calculations.

Download xlsx
7 0
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