Business, 05.05.2020 09:18 kealinwiley

Sophie is a 10 percent owner in Canine Connection, LLC, a day-care center for dogs. She is also a 15 percent owner in Little Laughter, LLC, a successful childrenâs clothing store. She does not materially participate in either business. Her at-risk and loss/income for the current year is as follows:
â¢ Canine Connection-At-risk = $140,000; Loss of $300,000
â¢ Little Laughter-At-risk = $50,000; Income of $$130,000
She also has wage income of $80,000 and capital gain income of $30,000.

Which of the following statements is true?

a. The loss suspended because of the at-risk rules is $110,000 and the loss suspended because of the passive activity loss rules is $60,000.b. The loss suspended because of the at-risk rules is $110,000 and the loss suspended because of the passive activity loss rules is $0.c. The loss suspended because of the at-risk rules is $160,000 and the loss suspended because of the passive activity loss rules is $10,000.d. The loss suspended because of the at-risk rules is $160,000 and the loss suspended because of the passive activity loss rules is $80,000.

Answers: 1

Show answers

Another question on Business

Business, 21.06.2019 23:30

Select the correct answer. joshua runs a large manufacturing business that is listed on the stock exchange. his company made good profits in the previous financial year. he now plans to reward his shareholders with handsome dividends. under which category of activities in the cash flow statement would the company’s accountants place this outflow of cash? a. investing activities b. operating activities c. financing activities d. non-operating activities

Answers: 3

Answer

Business, 22.06.2019 17:00

You hold a diversified $100,000 portfolio consisting of 20 stocks with $5,000 invested in each. the portfolio's beta is 1.12. you plan to sell a stock with b = 0.90 and use the proceeds to buy a new stock with b = 1.50. what will the portfolio's new beta be? do not round your intermediate calculations.

Answers: 2

Answer

Business, 22.06.2019 22:30

Ski powder resort ends its fiscal year on april 30. the business adjusts its accounts monthly, but closes them only at year-end (april 30). the resort's busy season is from december 1 through march 31. adrian pride, the resort's chief financial officer, the museums a close watch on lift ticket revenue and cash. the balances of these accounts at the end of each of the last five months are as follows:

Answers: 3

Answer

Business, 23.06.2019 01:20

The cook corporation has two divisions--east and west. the divisions have the following revenues and expenses: east westsales $ 603,000 $ 506,000 variable costs 231,000 300,000 traceable fixed costs 151,500 192,000 allocated common corporate costs 128,600 156,000 net operating income (loss) $ 91,900 $ (142,000 )the management of cook is considering the elimination of the west division. if the west division were eliminated, its traceable fixed costs could be avoided. total common corporate costs would be unaffected by this decision. given these data, the elimination of the west division would result in an overall company net operating income (loss) of: multiple choice$91,900$(64,100)$(142,000)$(50,100)

Answers: 3

Answer

You know the right answer?

Sophie is a 10 percent owner in Canine Connection, LLC, a day-care center for dogs. She is also a 15...

Questions