Five years ago Gerald invested $102,000 in a passive activity, his sole investment venture. On January 1, 2014, his amount at risk in the activity was $20,400. His shares of the income and losses were as follows:
| Year |
Income (Loss) |
| 2014 |
($30,600) |
| 2015 |
(20,400) |
| 2016 |
40,400 |
| Year |
Loss |
Allowed |
Disallowed |
| 2014 |
($30,600) |
$ |
$ |
| 2015 |
($20,400) |
| Total |
$ |
d. Considering both at-risk and passive loss rules, what is the amount of Gerald's suspended passive losses at the end of 2016?
At the end of 2016, what is the amount of Gerald's adjusted basis in the activity?