Violet, Inc

question 14

Multiple Choice

Violet, Inc., a closely held corporation (not a PSC) , has $55,000 of passive activity loss, $80,000 of net active income, and $20,000 of portfolio income. How much is Violet's taxable income for the current year?

• A) $20,000
• B) $45,000
• C) $80,000
• D) $100,000
• E) None of these.

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Definitions:

Contraceptives

Methods or devices used to prevent pregnancy as a result of sexual intercourse.

Vaginal Contraceptive Ring

A flexible, doughnut-shaped device inserted into the vagina that releases hormones to prevent pregnancy.

Tubal Ligation

A surgical procedure for sterilization in which a woman's fallopian tubes are clamped and sealed or severed and sealed, blocking the path of egg cells to the uterus.

Homosexual

A term referring to a sexual orientation where individuals are attracted to others of the same sex.