Matt Has Three Passive Activities and Has At-Risk Amounts in Excess

Matt has three passive activities and has at-risk amounts in excess of $100,000 for each.During the year, the activities produced the following income (losses) . $\begin{array}{ll}\text { Activity A } && (\$ 60,000) \\\text { Activity B } && (40,000) \\\text { Activity C } & &75,000 \\\text { Net passive activity loss } &\underline{\quad\quad}& (\$ 25,000) \end{array}$ Matt's suspended losses are as follows:

A) $25,000 is allocated to C? $0 to A and B.
B) $12,500 is allocated to A? $12,500 to B.
C) $15,000 is allocated to A? $10,000 to B.
D) $8,333 is allocated to A, B, and C.
E) None of these.

Correct Answer:

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