Tuna,Inc,a Closely Held Corporation Which Is Not a PSC,owns a 40

question 61

Multiple Choice

Tuna,Inc.,a closely held corporation which is not a PSC,owns a 40% interest in Trout Partnership,which is classified as a passive activity.Trout's taxable loss for the current year is $200,000.During the year,Tuna receives a $60,000 cash distribution from Trout.Other relevant data for Tuna are as follows:

How much of Tuna's share of Trout's loss may it deduct in calculating its taxable income?

• A)$0.
• B)$25,000.
• C)$60,000.
• D)$80,000.
• E)None of the above.

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Definitions:

Quantitative Variable

A variable with quantitative data.

Goals Scored

The number of times a goal is successfully made by a team or player in sports, notably in soccer or football.

Soccer Game

A team sport played between two teams of eleven players with a spherical ball, known globally and governed by a set of rules known as the Laws of the Game.

Categorical

Refers to variables that represent types of data which may be divided into groups.