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Wills at-risk amount in a passive activity is $25,000 at the beginning of the current...

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Accounting

Wills at-risk amount in a passive activity is $25,000 at the beginning of the current year. His current loss from the activity is $35,000 and he has no passive activity income. At the end of the current year, which of the following statements is correct?

a. Will has a gain of $25,000 suspended under the passive loss rules.

b. Will has an at-risk amount in the activity of $35,000.

c. Will has a loss of $10,000 suspended under the at-risk rules.

d. Will has a loss of $35,000 suspended under the passive loss rules.

e. None of the choices are correct.

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