Baxter invested $50,000 in an activity in 2010.At the beginning of 2012,Baxter's at-risk amount was $10,000.Baxter's share of losses from the activity were as follows: If you ignore the passive loss rules,how much income/loss will Baxter have from the activity in 2014?
A) $0.
B) $5,000.
C) $10,000.
D) $15,000.

Question

Baxter invested $50,000 in an activity in 2010.At the beginning of 2012,Baxter's at-risk amount was $10,000.Baxter's share of losses from the activity were as follows:  If you ignore the passive loss rules,how much income/loss will Baxter have from the activity in 2014?
A) $0. 
B) $5,000. 
C) $10,000. 
D) $15,000.

Quizplus · Accepted Answer

The Answer of Baxter invested $50,000 in an activity in 2010.At the beginning of 2012,Baxter's at-risk amount was $10,000.Baxter's share of losses from the activity were as follows:  If you ignore the passive loss rules,how much income/loss will Baxter have from the activity in 2014?
A) $0. 
B) $5,000. 
C) $10,000. 
D) $15,000.

Baxter Invested $50,000 in an Activity in 2010