Carmen purchased a business for $150,000 by investing $40,000 of her own funds and borrowing $110,000 from local national bank. carmen signed the note payable as a personal guarantor. in the first year of operation, the business had an operating loss of $120,000. the business incurred an operating loss of $45,000 in the second year and had operating income of $25,000 in the third year. what is the maximum carryforward loss deductible against the third year’s income? assume that carmen materially participates in the business.
a. $20,000
b. $15,000
c. $30,000
d. $45,000
e. $120,000

Over the past several years, joyce chen has been able to save regularly. as a result, today she has $54,188 in savings and investments. she wants to establish her own business in 5 years and feels she will need $100,000 to do so. a. if she can earn 6% on her money, how much will her $54,188 in savings/investments be worth in 5 years? will joyce have the $100,000 she needs? if not, how much more money will she need? b. given your answer to part a, how much will joyce have to save each year over the next 5 years to accumulate the additional money? assume she can earn interest at a rate of 6%. c. if joyce can afford to save only $4,000 a year then, given your answer to part a, will she have the $100,000 she needs to start her own business in 5 years?