[ANSWERED] Passive Losses. In the current year Alice reports $150,000 of salary income, $20,000 of income from.

Passive Losses. In the current year Alice reports $150,000
of salary income, $20,000 of income from activity X, and $35,000 and $15,000
losses from activities Y and Z, respectively. All three activities are passive
with respect to Alice and are purchased during the current year. What is the
amount of loss that may be deducted with respect to each of these activities?
Also compute the amount of loss that must be carried over for each activity.
1:9-43 Passive L osses. In the current year Clay reports income and losses from
the following activities:
Activities X, Y, and Z are all passive with respect to Clay.
Activity Z has $40,000 in passive losses which are carried over from the prior
year. In the current year Clay sells activity Z for a taxable gain of $30,000.
a. What is the amount of loss that Clay may deduct and what
is the amount that must be carried over in the current year?
b. Based solely on the amounts above, compute Clay’s AGI for
the current year.