During the year, Mark reports $90,000 of active business income from his law practice. He also owns two passive activities. From Activity A, he earns $20,000 of income, and from Activity B, he incurs a $30,000 loss. As a result, Mark reports AGI of Group of answer choicesa. $80,000

b. $90,000 with a $10,000 loss carryopver

c. $90,000 with a $30,000 carryover

d. $110,000 with a $30,000 carryover

Question

Business

Aleah Lozano

9 August, 05:35

During the year, Mark reports $90,000 of active business income from his law practice. He also owns two passive activities. From Activity A, he earns $20,000 of income, and from Activity B, he incurs a $30,000 loss. As a result, Mark reports AGI of Group of answer choicesa. $80,000

b. $90,000 with a $10,000 loss carryopver

c. $90,000 with a $30,000 carryover

d. $110,000 with a $30,000 carryover

+1

Answers (1)

Know the Answer?

Arden · Answer 1

b. $90,000 with a $10,000 loss carryover

Explanation:

Given that

Active business income = $90,000

From Activity A, the income earns = $20,000

From Activity B, the loss incurs = $30,000

So by considering the above information, the Adjusted gross income should be

The $90,000 should be recorded

Plus, the $10,000 loss should also be carryover

The $10,000 loss is come from

= $20,000 - $30,000

= - $10,000