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  3. sandra, a cpa, earns $250,000 from her accounting

Sandra, a CPA, earns $250,000 from her accounting practice in the current year. Her interest...

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Accounting

Sandra, a CPA, earns $250,000 from her accounting practice in the current year. Her interest income for the year is $15,000.

She also has the following income and loss from her other investments:

  • Activity A incurred a loss of $50,000. Sandra is not a material participant in Activity A. Her at-risk investment in Activity A is $65,000 at the beginning of the year.
  • Activity B incurred a loss of $18,000. Sandra is a material participant in Activity B. Her at-risk investment in Activity B is $12,000 at the beginning of the year.
  • Activity C had income of $10,000. Sandra is not material participant in Activity C. Her at-risk investment in Activity C is $8,000 at the beginning of the year.

1. What is Sandra's gross income for the year? Show computations.

2. What is Sandra's suspended at-risk loss carryover and passive activity loss carryover at the end of the year, if any? Show computations.

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