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noitudninoo ASl oldiouboblo moms tsdw.mslq поіап9q eroyolqfns Tod ni tmsqrohsq S8I0S ni bowollsaib ai 002,22 (a .008.22 (A 0


16) Alice is an attomey and earned si 75,000 from her practice in the current year. Alice also owns three passive activities.
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Answer #1

16.

The correct answer is D) $175,000.

Supporting Explanations:

The passive gains will be added to the total earnings only after setting off all the passive losses.

In the given problem, the total passive losses are $56,000 ($32,000 + $24,000) which need to be set off against the total passive gains of $40,000. Hence, the passive gains are nil after setting off against passive losses of $56,000. Therefore, there are no gains which will be added back to the total earnings of $175,000.

Hence, Alice's adjusted gross income for the current year is $175,000 only.

Thus, the correct answer is D) $175,000.

Note: As per HOMEWORKLIB RULES, the second question is answered as the first question is given on reverse side, hence, please post the remaining questions separately.

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