Problem 11-50 (LO. 2, 3, 5, 7) Grace acquired an activity four years ago. The loss from the activity is $50,000 in the current year (at-risk basis of $40,000 as of the beginning of the year). Without considering the loss from the activity, she has gross income of $140,000. If the activity is a convenience store and Grace is a material participant, what is the effect of the activity on her taxable income? Grace may deduct s4 40,0 of the $50,000 loss due to the at-riskrules . 10,000 is suspended. The available loss is not subject to the passive activity loss rules because As a result, Grace's income for tax purposes is $