Jana Reports the Following Income and Loss Activities A, B, and C Are All Passive Activities

Multiple Choice

Jana reports the following income and loss: $$\begin{array} { | l | r | } \hline \text { Salary } & \$ 120,000 \\\hline \text { Income from activity A } & 60,000 \\\hline \text { Loss from activity B } & ( 30,000 ) \\\hline \text { Loss from activity C } & ( 70,000 ) \\\hline\end{array}$$ Activities A, B, and C are all passive activities.
Based on this information, Jana will recognize

A) adjusted gross income of $80,000.
B) salary of $120,000 and deductible net losses of $40,000.
C) salary of $120,000, passive income of $60,000, and passive loss carryovers of $100,000.
D) salary of $120,000 and net passive losses of $40,000 that will be carried over.