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Becker Question –

Q: In the current year,a taxpayer reports the following items:

Salary $50,000

Income from partnership A, in which the taxpayer materially participates $50,000

Passive activity loss from partnership B $(40,000)

During the year, the taxpayer disposed of the interest in partnership B,which had a suspended loss carryover of $10,000 from prior year. What is the taxpayer’s adjusted gross income for the current year?

a. $20,000

b. $30,000

c. $60,000

d. $70,000

Thanks in advanced.