George, an attorney, earns $200,000 from his law practice in the current year. He receives $25,000 in dividends and interest during the year as well as $5,000 of income from a passive activity. In addition, he incurs a loss of $20,000 from an investment in a passive activity. What is Carl’s AGI for the current year after considering the passive investments? $225,000 $200,000 $240,000   $245,000   $210,000

SWFT Comprehensive Vol 2020
43rd Edition
ISBN:9780357391723
Author:Maloney
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Chapter11: Invest Or Losses
Section: Chapter Questions
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George, an attorney, earns $200,000 from his law practice in the current year. He receives $25,000 in dividends and interest during the year as well as $5,000 of income from a passive activity. In addition, he incurs a loss of $20,000 from an investment in a passive activity. What is Carl’s AGI for the current year after considering the passive investments?

$225,000

$200,000

$240,000
 
$245,000
 
$210,000
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