according to the following 2017 data for floyd company, a closely held corporation, what is its taxable income?
Net passive
loss. $5,000
Net active income. $3,000
Net portfolio income $4,000
A. $2,000
B. $3,000
C. $4,000
D. $7,000
The answer will be option B - $3,000
This is because the amount of $5,000 (which is a net passive loss) will be offset from the portfolio income. Portfolio income is a passive income and hence the amount will be completely used to offset the net passive loss of $5,000.
Thus the taxable income will only be the net active income of $3,000.
according to the following 2017 data for floyd company, a closely held corporation, what is its...
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