A Taxpayer Had the Following for the Current Year

question 43

Multiple Choice

A taxpayer had the following for the current year: ​
I.If the taxpayer is a closely held corporation,taxable income from the three activities is income of $6,000.
II.If the taxpayer is an individual and the passive income is not related to a rental real estate activity,taxable income is $36,000.
​

• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Government Purchase

Expenditures by the government on goods and services that are part of the country's Gross Domestic Product (GDP).

Military Aircrafts

Military aircrafts are aircrafts used by the armed forces of countries for defense, attack, and transport purposes, including fighters, bombers, and transport planes.

Interstate Highway

A network of controlled-access highways that form part of the National Highway System in the United States.

Public School

An educational institution funded and operated by the government, providing free education to students.