During the Year, Aimee Reports $30,000 of Active Business Income

question 76

Multiple Choice

During the year, Aimee reports $30,000 of active business income, $15,000 of income from passive activity X, and a $25,000 loss from passive activity Y. Determine the tax consequences of these events.
I.The $15,000 income from activity X can offset $15,000 of the loss from activity Y.
II.Any passive loss that is not deducted in the current year is suspended.
​

• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

---

Definitions:

Validity

The extent to which a concept, conclusion, or measurement is well-founded and likely corresponds accurately to the real world.

Customization

Tailoring products or services to meet the specific needs or preferences of individual customers.

Banding

A method of categorizing or grouping similar jobs or salary levels within an organization for administrative purposes.

Affirmative Action

Policies and practices designed to promote equal employment opportunities for historically marginalized groups by considering gender, race, or other characteristics in hiring and promotions.