Peach Corporation Had $210,000 of Net Active Income, $45,000 of Portfolio

question 40

True/False

Peach Corporation had $210,000 of net active income, $45,000 of portfolio income, and a $230,000 passive loss during the current year. If Peach is a closely held C corporation that is not a PSC, it can deduct $210,000 of the passive loss in the year.

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Definitions:

Commercial Farming

The practice of farming with the intent to produce crops and livestock for sale in the market, often involving large-scale operations.

Knights Of Labor

A significant labor organization in the late 19th century in the United States that aimed to promote workers' rights and social reforms.

Sherman Anti-Trust Act

A landmark federal statute passed in 1890 aimed at promoting economic competition by prohibiting monopolies, trusts, and other practices that restricted commerce.