During 2008,an S corporation in Gainesville,Florida,incurs the following transactions.

The corporation's passive investment income for 2008 is:

Question

During 2008,an S corporation in Gainesville,Florida,incurs the following transactions.

The corporation's passive investment income for 2008 is:

Quizplus · Accepted Answer

For purposes of applying the passive investment income limitation,gains from the sale of securities are not netted against any such losses.Passive investment income,therefore,is $19,000 [$8,000 (interest income)+ $11,000 (long-term capital gain from the sale of securities)].

During 2008,an S Corporation in Gainesville,Florida,incurs the Following Transactions