Azul Corporation, a Personal Service Corporation, Had $300,000 of Active

question 75

Multiple Choice

Azul Corporation, a personal service corporation, had $300,000 of active income, $40,000 of portfolio income, and a $190,000 passive loss during the year. How much is Azul's taxable income?

• A) $110,000.
• B) $150,000.
• C) $300,000.
• D) $340,000.
• E) None of the above.

---

Definitions:

Factor Endowments

Refers to the quantity and quality of resources a country or region has available, such as labor, land, and capital.

Heckscher-Ohlin Theorem

An economic theory stating that countries export what they can most efficiently and abundantly produce.

Labor Intensive

describes industries or production processes that require a large amount of labor relative to capital in the production process.

WTO

The World Trade Organization, an intergovernmental organization that regulates international trade agreements and disputes between nations.