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:

Moon Illusion

A perceptual phenomenon in which the Moon appears larger near the horizon than it does while higher up in the sky.

Perceived Distance

The subjective estimation or impression of the space between oneself and an object or between two points.

Smaller Retinal Image

refers to the phenomenon where objects that are farther away from the observer project a smaller image on the retina than those that are close by.

More Distant

Being more distant refers to a position that is further away in space or time, or to relationships that are less close or less involved emotionally.