Zhou owns a nonrental business with two separate departments. Department A generates net income of $83,200, and Department B generates a net loss of $66,560. Zhou participates 800 hours in the operations of Department A and 300 hours in the operations of Department B. If Zhou is allowed to treat the departments as components of a single activity, calculate the amount of the Department B loss that can be offset against the income from Department A in the current year.
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Zhou owns a nonrental business with two separate departments. Department A generates net income of $...
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