During the Current Year, Violet, Inc

question 23

Multiple Choice

During the current year, Violet, Inc., a closely held corporation (not a PSC) , has $55,000 of passive activity loss, $80,000 of net active income, and $20,000 of portfolio income. How much is Violet's taxable income for the current year?

• A) $20,000
• B) $45,000
• C) $80,000
• D) $100,000
• E) None of the above

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Definitions:

Prefrontal Cortex

The front part of the frontal lobe responsible for complex cognitive behavior, decision making, and moderating social behavior.

Amygdala

A tiny brain structure that registers emotions, particularly fear and anxiety.

Growth Spurt

The relatively sudden and rapid physical growth that occurs during puberty. Each body part increases in size on a schedule: Weight usually precedes height, and growth of the limbs precedes growth of the torso.

Limbic System

A complex set of brain structures located on both sides of the thalamus, immediately beneath the cerebrum, involved in emotions, memory, and arousal.