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.

Question

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.

Quizplus · Accepted Answer

The Answer of 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.

A Taxpayer Had the Following for the Current Year