Question

Stan, a computer lab manager, earns a salary of $80,000 and receives $25,000 in dividends and interest during the year. In addition, he incurs a loss of $40,000 from an investment in a passive activity. His at-risk amount in the activity at the beginning of the year is $55,000. What is Stan’s adjusted gross income for this year?

Answer 1

Answer:

Stan’s adjusted gross income for this year is $105,000

Explanation:

Stan, a computer lab manager earns;

Salary = $80,000

Dividend = $25,000

 Stan’s adjusted gross income for this year = Salary + Dividend

Stan’s adjusted gross income for this year = $80,000 + $25,000

Stan’s adjusted gross income for this year = $105.000

He isn't permitted to balance the detached misfortune against dynamic or portfolio pay

Therefore, His Adjusted Gross Income is $105,000