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1. Rhonda has an adjusted bases and an at risk amount of S7,500 in a passive activity at the beginning of the year She also has a suspended passive activity loss of $1,500 carried over from the prior year. During the current year, she has a loss of $12,000 from the passive activity. Rhonda has no passive activity income from other sources this year. Determine the following items relating to Rhonda's passive activity as of the end of the year. a. Adjusted basis and at-risk amount in the passive activity b. Loss suspended under the at risk rules c. Suspended passive activity loss 2. A number of years ago, Kay acquired an interest in a partnership in which she is not a material participant Kay's basis in her partnership interest at the beginning of 2-17 is $40,000. Kay's share of partnership loss is $35,000 in 2017, while her share of the partnership income is S15,000 in 2018. How much may Kay deduct in 2017 and 2018, assuming that she owns no other passive income 3. During the current year, Gene, a CPA, performs services as follows: 1,800 hours in his tax practice and 50 hours in an apartment leasing operation in which he has a 15% interest Because of his oversight duties, Gene is considered to be an active participant. He expects that his share of the loss realized from the apartment leasing operation will be S30,000 and that his tax practice will show a profit of approximately $80,000. Gene is single and has no other income. Discuss the character and treatment of the income and losses generated by these activities

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