Identify Which of the Following Statements Is True

question 106

Multiple Choice

Identify which of the following statements is true.

• A)Personal service corporations may be subject to the passive activity limitations.
• B)All C corporations may be subject to the passive activity limitations.
• C)Personal service corporations may use passive losses and credits to offset net active income but not portfolio income.
• D)Both A and B are true.

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Definitions:

Homo Erectus

An extinct species of early human that lived throughout much of the Pleistocene geological epoch, known for its upright walking ability.

Fossil Record

The collection of all known fossils and their placement in order, which provides evidence about the history of life on Earth.

Bipedal

Bipedalism refers to the ability of an organism to walk on two legs, a key feature that distinguishes humans and their ancestors from most other primates.

Homo Neanderthalensis

An extinct species of human that lived alongside early homo sapiens, characterized by robust build and distinct skull features.