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Alfonso sells a passive activity in the current year for $800,000. His adjusted basis in the...

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Accounting

Alfonso sells a passive activity in the current year for$800,000. His adjusted basis in the activity is $200,000, and heuses the installment method of reporting the gain. The activity hassuspended losses of $44,000. Alfonso receives $400,000 in the yearof sale.

Enter as a percentage. For example, .35 would be entered as"35". %

a. What is his gross profit ratio on the sale?_________________%      

b. His recognized gain for the current year is $.____________________

c. Alfonso can currently deduct $______________________ ofsuspended losses.

Answer & Explanation Solved by verified expert
4.1 Ratings (848 Votes)
Givena Sale of passive activity 800000Adjusted basis 200000Profit 800000 200000 600000Gross profit ratio Gross Profit Sales 600000 800000    See Answer
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