Question: 7. Brent is single and owns a passive activity that has a basis of $25,000 and a suspended loss of $8,000. He acquired the passive

7. Brent is single and owns a passive activity that has a basis of $25,000 and a suspended loss of $8,000. He acquired the passive activity several years ago. Brent's taxable income from active and portfolio income is $85,000, and he has no other capital gains or losses for the year. a. What is the effect on Brent's taxable income if he sells the passive activity for $42,000 ? b. What is the effect on Brent's taxable income if he sells the passive activity for $13,000 ? c. What is the effect on Brent's taxable income if he dies this year while the fair market value of the passive activity is $30,000 ? d. What is the effect on Brent's taxable income if he dies this year while the fair market value of the passive activity is $18,000 ? e. What is the effect on Brent's taxable income if he gives the passive activity to his brother Norm when the fair market value of the passive activity is $30,000

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