Noah Yobs, age 55, who has $63,400 of AGI (solely from wages) before considering rental activities, has $57,060 of losses from a real estate rental activity in which he actively participates. He also actively participates in another real estate rental activity from which he has $31,700 of income. He has other passive activity income of $20,288. Required:
What amount of rental loss can be used to offset active or portfolio income?

Mae jong corp. issues $1,000,000 of 10% bonds payable which may be converted into 10,000 shares of $2 par value ordinary shares. the market rate of interest on similar bonds is 12%. interest is payable annually on december 31, and the bonds were issued for total proceeds of $1,000,000. in accounting for these bonds, mae jong corp. will: (a) first assign a value to the equity component, then determine the liability component. (b) assign no value to the equity component since the conversion privilege is not separable from the bond.(c) first assign a value to the liability component based on the face amount of the bond.(d) use the “with-and-without” method to value the compound instrument.