White Corporation, a Closely Held Personal Service Corporation, Has $150,000

question 69

Multiple Choice

White Corporation, a closely held personal service corporation, has $150,000 of passive activity losses, $120,000 of active business income, and $30,000 of portfolio income. How much of the passive activity loss can White Corporation deduct?

• A) $0
• B) $30,000
• C) $120,000
• D) $150,000
• E) None of the above

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Definitions:

Common Stock Account

An equity item on the balance sheet representing funds raised by issuing common shares.

Current Market Price

The price at which an asset or security is traded in the market at the present moment.

Current Liabilities

Obligations or debts of a company that need to be settled with creditors within a twelve-month period.

Twelve Months

A period of one year, often used in financial statements to provide a snapshot of a company's performance.