Grebe Corporation, a Closely Held Corporation That Is Not a PSC

question 79

Multiple Choice

Grebe Corporation, a closely held corporation that is not a PSC, had $75,000 of net active income, $60,000 of portfolio income, and a $105,000 passive activity loss during the year. How much of the passive activity loss can Grebe deduct in the current year?

• A) $0
• B) $60,000
• C) $105,000
• D) $135,000
• E) None of the above

---

Definitions:

Unreasonably Dangerous

A description of a product's condition being beyond the expected level of danger for typical use, posing risks to users.

Ordinary Consumer

A term used to refer to an average person who buys goods and services for personal use.

Strict Product Liability

holds manufacturers, distributors, and sellers liable for damages caused by defects in their products, regardless of negligence or fault.

Plaintiff

An individual or entity that initiates a lawsuit or legal action against another party, known as the defendant.