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Problem 7a: Investor Losses Manny Kant is invested one passive activity - Categorical,...

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Accounting

Problem 7a: Investor Losses
Manny Kant is invested one passive activity - Categorical, LLC. As of 1/1/2022 he had the following At-Risk Basis and Suspended Losses in Categorical:
Categorical, LLC
At-Risk Basis
$0
Suspended Losses under At-Risk Rules ($100,000)
Suspended Passive Activity Losses ,($20,000)
In addition, Manny was allocated the following passive income/(loss) from Categorical in 2022 and 2023:
Categorical, LLC
2022 Income/(loss)
($60,000)
2023 Income/(loss)
$150,000
Finally, during 2023 Manny's share of recourse debt in the activity increased by $50,000.
Required: What is Manny's ending at-risk basis in Categorial, LLC as of 1231?2023?
Problem 7b: Investor losses continued
Assume that in 2023 Manny invested $20,000 in an additional passive activity, Imperative, Inc. Imperative generated Profits of $40,000 in 2023. Everything else is as before.
Required: Using the information from the previous part, and information above, what amount taxable income/(loss) will Manny recognize from his investment in these activities for 2023?
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