Wes's at-risk amount in a passive activity is $25,000 at the beginning of the current year. His current loss from the activity is $35,000 and he has no passive activity income. At the end of the current year, which of the following statements is incorrect?
A. Wes has a loss of $25,000 suspended under the passive activity loss rules.
B. Wes has an at-risk amount in the activity of $0.
C. Wes has a loss of $10,000 suspended under the at-risk rules.
D. Wes has a loss of $35,000 suspended under the passive activity loss rules.
E. None of these is incorrect.
Answer: D
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