Sandra acquired a passive activity three years ago. Until last year, the activity was profitable, and her at-risk amount was $300,000. Last year, the activity produced a loss of $100,000, and in the current year, the loss is $50,000. Assuming Sandra has received no passive activity income in the current or prior years, her suspended passive activity losses from the activity are: a. $90,000 from last year and $50,000 from the current year. b. $100,000 from last year and $50,000 from the current year. c. $0 from last year and $0 from the current year. d. $50,000 from the current year.

c. $0 from last year and $0 from the current year.

Explanation:

$300,000 - $100,000 = $200,000 new at risk basis at the end of last year

at risk basis at the end of current year = at risk basis at the end of last year - current year's loss = $200,000 - $50,000 = $150,000

since at risk basis is still $150,000 (not negative), there is no suspended passive activity loss

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.