Tom and Shawn Own All of the Outstanding Stock of Brady

question 27

Multiple Choice

Tom and Shawn own all of the outstanding stock of Brady Corporation (a retail store operated as a C corporation) .This year,Brady generates taxable income of $20,000 from active business operations,and also reports investment interest of $22,000 and losses of $28,000 from a passive activity.As a result,Brady Corporation reports

• A)net income of $42,000.
• B)interest income of $22,000 and a passive loss carryover of $8,000.
• C)business income of $20,000 and a passive loss carryover of $6,000.
• D)business income of $20,000,interest income of $22,000,and a passive loss carryover of $28,000.

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Definitions:

Neurons

Specialized cells in the nervous system that transmit information through electrical and chemical signals.

Sodium Ions

Positively charged particles of sodium, crucial for conducting nerve impulses, muscle contraction, and maintaining fluid balance.

Potassium Ions

Essential electrolytes in body fluids that play key roles in cellular function and electrical charge conveyance in neurons.

Negatively Charged

Having an excess of electrons, resulting in a charge that repels other negatively charged objects and attracts positively charged objects.