A taxpayer had the following for the current year Active Portfolio Passive Income Income Income Income $75,000 $22,000 $55,000 Deductions (45,000) (16,000) (110,000) Income(Loss) $30,000 $6,000 $(55,000) I If the taxpayer is a closely held corporation, taxable income from the three activities is in...

A taxpayer had the following for the current year: Active Portfolio Passive Income Income Income Income $75,000

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A taxpayer had the following for the current year:

	Active	Portfolio	Passive
	Income	Income	Income
Income	$75,000	$22,000	$55,000
Deductions	(45,000)	(16,000)	(110,000)
Income(Loss)	$30,000	$6,000	$(55,000)

I.	If the taxpayer is a closely held corporation, taxable income from the three activities is income of $6,000.
II.	If the taxpayer is an individual and the passive income is not related to a rental real estate activity, taxable income is $36,000.

	a.	Only statement I is correct.
	b.	Only statement II is correct.
	c.	Both statements are correct.
	d.	Neither statement is correct.

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Fundamental Accounting Principles

ISBN: 978-1259916960

24th edition

Authors: John J Wild, Ken Shaw

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Posted Date: Oct 20, 2020 03:07 AM

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A taxpayer had the following for the current year: Active Portfolio Passive Income Income Income Income $75,000

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Fundamental Accounting Principles

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