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:

Opportunity Costs

The financial sacrifice made by not selecting the alternative that ranks immediately lower when faced with a decision.

Cars

Wheeled motor vehicles used for transportation, typically powered by an internal combustion engine or electric motors.

Computers

Electronic devices capable of processing, storing, and displaying information, used for a wide range of applications from personal computing to complex scientific calculations.

Opportunity Cost

The charge of overlooking the next most beneficial alternative while making a choice.