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.

---

Definitions:

Losses

Instances or feelings of having lost someone or something important, which can lead to emotional distress, such as grief or mourning.

Older Children

Children who are in the later stages of childhood, approaching adolescence, often characterized by increased independence and more complex cognitive, social, and emotional development.

Rufous-Winged Sparrows

A species of bird known for its distinct rufous patches on the wings, commonly found in the southwestern United States and Mexico.

Sonoran Desert

A vast desert region spanning parts of the southwestern United States and northwestern Mexico, characterized by its unique flora and fauna.