Oriole Corporation Has Active Income of $45,000 and a Passive

question 26

True/False

Oriole Corporation has active income of $45,000 and a passive activity loss of $23,000 in the current year.Under an exception, Oriole can deduct the $23,000 loss if it is a personal service corporation.

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Definitions:

Puffing

refers to exaggerated or hyperbolic comments about a product or service that are subjective opinions, not intended to be taken as facts or guarantees.

Express Warranty

An express warranty is a seller's promise or guarantee about the quality or functionality of a product, explicitly stated in the contract or marketing materials.

Physical Nature

Pertains to the material aspects or characteristics of something, focusing on its tangible properties.

Magnuson-Moss Act

A federal law enacted in 1975 to protect consumers from deceptive warranty practices, applying to warranties on consumer products.