Baxter Invested $50,000 in an Activity in 2013 $\begin{array}{rr}\text { Year }&\text { Gain(Loss) }\\2015 & (\$ 25,000 \\2016 & 10,000 \\2017 & 10,000\end{array}$

Baxter invested $50,000 in an activity in 2013.At the beginning of 2015,Baxter's at-risk amount was $10,000.Baxter's share of losses from the activity were as follows: $\begin{array}{rr}\text { Year }&\text { Gain(Loss) }\\2015 & (\$ 25,000 \\2016 & 10,000 \\2017 & 10,000\end{array}$ If you ignore the passive loss rules,how much income/loss will Baxter have from the activity in 2017?

A) $0.
B) $5,000.
C) $10,000.
D) $15,000.

Correct Answer:

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