Tom and Shawn Own All of the Outstanding Stock of Brady

question 27

Multiple Choice

Tom and Shawn own all of the outstanding stock of Brady Corporation (a retail store operated as a C corporation) .This year,Brady generates taxable income of $20,000 from active business operations,and also reports investment interest of $22,000 and losses of $28,000 from a passive activity.As a result,Brady Corporation reports

• A)net income of $42,000.
• B)interest income of $22,000 and a passive loss carryover of $8,000.
• C)business income of $20,000 and a passive loss carryover of $6,000.
• D)business income of $20,000,interest income of $22,000,and a passive loss carryover of $28,000.

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Definitions:

Hypersomnulence

Excessive sleepiness, even after adequate or prolonged nighttime sleep, that can significantly disrupt daily activities.

Falls Asleep

The transition from wakefulness into sleep, a natural periodic state of rest for the mind and body.

Jeopardizing

Putting something or someone in a situation where there is a danger of loss, harm, or failure.

Sleep-Wake Disorder

A medical disorder of the sleep patterns of a person or animal, which may include difficulties in falling or staying asleep, sleepwalking, or excessive daytime sleepiness.