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