White Corporation, a Closely Held Personal Service Corporation, Has $150,000

question 69

Multiple Choice

White Corporation, a closely held personal service corporation, has $150,000 of passive activity losses, $120,000 of active business income, and $30,000 of portfolio income. How much of the passive activity loss can White Corporation deduct?

• A) $0
• B) $30,000
• C) $120,000
• D) $150,000
• E) None of the above

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Definitions:

Pyrolysis

The chemical decomposition of a substance through the application of heat, in the absence of oxygen.

Law of Conservation

A principle stating that mass in an isolated system is neither created nor destroyed by chemical reactions or physical transformations.

Energy

The capacity to do work or produce change, existing in forms such as heat, kinetic energy, potential energy, and electrical energy.

Calorimeter

An apparatus used for measuring the amount of heat involved in chemical reactions or physical changes as well as heat capacity.