Peach Corporation Had $210,000 of Active Income, $45,000 of Portfolio

question 85

True/False

Peach Corporation had $210,000 of active income, $45,000 of portfolio income, and a $230,000 passive loss during the year. If Peach is a closely held C corporation that is not a PSC, it can deduct $230,000 of the passive loss in the year.

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Definitions:

Agricultural Adjustment Act

A New Deal legislation passed in 1933 aimed at reducing agricultural production through financial incentives, thus raising farm prices.

Limit Production

A policy or practice aimed at curtailing the amount of goods manufactured or services provided, often to stabilize or increase prices or to conserve resources.

United Auto Workers

An American labor union representing workers in the automobile manufacturing industry, as well as other sectors of the economy, and is known for its role in advocating for workers' rights and benefits.