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) .
Activity A
($60,000)
Activity B
(40,000)
Activity C
75,000
Net passive activity loss
($25,000)
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 the above.

Correct Answer:

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