Passive Activity Loss Limitation Rules Do Not Apply to

question 22

Multiple Choice

Passive activity loss limitation rules do not apply to
I.Publicly-held corporations.
II.Personal service corporations.
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• 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:

Triple

To increase or become three times as much in size, number, or amount.

Compounded Semiannually

A different way to describe the process of applying interest to a principal balance twice a year, allowing interest to be earned on previously accrued interest.

Monthly Compounded

A method of calculating interest where the interest amount is added to the principal at the end of each month, increasing the amount on which subsequent interest is calculated.

Compounded Monthly

Calculating interest earnings using both the initial principal and previously earned interest on a monthly basis.