Alex Has Three Passive Activities with At-Risk Amounts in Excess

Alex has three passive activities with at-risk amounts in excess of $100,000 for each.During the year, the activities produced the following income (losses) . Alex's suspended losses are as follows:

A) $75,000 is allocated to C; $0 to A and B.
B) $37,500 is allocated to A; $37,500 to B.
C) $56,250 is allocated to A; $18,750 to B.
D) $25,000 is allocated to A, B, and C.
E) None of the above.

Correct Answer:

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