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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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Brrunno [24]

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4 0
2 years ago
Carrot Corporation, a C corporation, has a net short-term capital gain of $65,000 and a net long-term capital loss of $250,000 d
Molodets [167]

Answer:

The answer is  $45,000

Explanation:

$45,000

- Net Short Term Capital gain +Net Long Term Capital loss= 65,000+ (250,000)= -185,000

-Net Long Term Capital loss(2015)+Net Short Term Capital gain (2016)+Net Long Term Capital Gain(2017) = 60,000+45,000+35,000=140,000

-185,000+140,000= <u>(45,000)</u>

5 0
4 years ago
Read 2 more answers
A company issued a short-term note payable to a bank with a stated 12 percent rate of interest . The bank charged a .5% loan ori
Mandarinka [93]

Answer:

17%

Explanation:

If a company issued a short-term note payable to a bank with a stated 12 percent rate of interest and in addition the bank charged a .5% loan origination fee and remitted the balance to the company. The effective interest rate paid by the company in this transaction would be 17%

The effective annual interest rate is <u>the interest rate that is actually earned or paid on an investment, loan</u> or other financial product.

Hence, since the company is both paying the initial 5% and the later 12%, effectively the company is paying 17% on the note payable.

8 0
3 years ago
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Tetradic Solutions has been making purchases from Ribbon, Inc., for the last three years. Every three months, it makes the same
nalin [4]

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Tetradic's situation can be defined as the modified rebuy. Modified Rebuy refers to a purchasing situation whereby an individual or organization buys goods that they've bought before but then changes the supplier or some elements in the previous order.

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3 0
3 years ago
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Answer:

An exception based on public policy.

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