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:

Cognitive-Behavioral Psychologist

A mental health professional specializing in cognitive-behavioral therapy, which focuses on identifying and changing negative thoughts and behaviors.

Histrionic

A personality disorder characterized by excessive emotionality and attention-seeking behavior.

Narcissistic

Relating to narcissism, which is characterized by an excessive interest in or admiration of oneself and one's physical appearance, coupled with a lack of empathy for others.

Psychotherapy

A therapeutic treatment involving psychological techniques designed to assist individuals in overcoming difficulties and achieving personal growth.