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Mara Owns an Activity with Suspended Passive Losses from Prior

Question 85

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Mara owns an activity with suspended passive losses from prior years of $13,000.In the current year,Mara becomes a material participant in the activity.This year the activity generates $6,000 of income.The net effect of this activity on Mara's current year AGI is a(n)


A) increase of $6,000.
B) decrease of $13,000.
C) 0)
D) decrease of $7,000.

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