Sam rents his second home. during the current year, he reported a $40,000 net loss from the rental. assume that sam actively participates in the rental activity and no phaseout limitations apply.
what is the greatest amount of the rental loss that sam can deduct against ordinary income in the current year?

a. $25,000 b. $40,000 c. $0 d. $5,000

Kirnon clinic uses client-visits as its measure of activity. during july, the clinic budgeted for 3,250 client-visits, but its actual level of activity was 3,160 client-visits. the clinic has provided the following data concerning the formulas to be used in its budgeting: fixed element per month variable element per client-visitrevenue - $ 39.10personnel expenses $ 35,100 $ 10.30medical supplies 1,100 7.10occupancy expenses 8,100 1.10administrative expenses 5,100 0.20total expenses $ 49,400 $ 18.70the activity variance for net operating income in july would be closest to: