Randall invested $200,000 in Activity A and $100,000 in Activity B both passive)in 2002.At the beginning of 2016,Randall's at-risk amount was $20,000 in A and $15,000 in B.Activity A had a loss of $25,000 and Activity B had income of $30,000.What is the amount of income or loss recognized in 2016 from these activities?
A)$5,000 income.
B)$10,000 income.
C)$25,000 loss.
D)$0.

Question

Quizplus · Accepted Answer

The Answer of Randall invested $200,000 in Activity A and $100,000 in Activity B both passive)in 2002.At the beginning of 2016,Randall's at-risk amount was $20,000 in A and $15,000 in B.Activity A had a loss of $25,000 and Activity B had income of $30,000.What is the amount of income or loss recognized in 2016 from these activities?
A)$5,000 income.
B)$10,000 income.
C)$25,000 loss.
D)$0.

Randall Invested $200,000 in Activity a and $100,000 in Activity