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Baxter Invested $50,000 in an Activity in 2012

Question 66

Multiple Choice

Baxter invested $50,000 in an activity in 2012.At the beginning of 2014,Baxter's at-risk amount was $10,000.Baxter's share of losses from the activity were as follows: Year GainLoss)
2014 $25,000 )
2015 10,000
2016 10,000
If you ignore the passive loss rules,how much income/loss will Baxter have from the activity in 2016?


A) $5,000.
B) $15,000.
C) $10,000.
D) $0.

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