Problem 6-19Passive Losses of Personal Service Corporation (LO. 6)Ash, Inc., a closely held personal service corporation, has $100,000 of passive losses. In addition, Ash has $80,000 of active business income and $20,000 of portfolio income. How much of the passive loss may Ash use to offset the other types of income?
Your answer:Problem 6-20Passive Losses of Corporations (LO. 6)In the current year, White, Inc., earns $400,000 from operations and receives $36,000 in dividends and interest on various portfolio investments. White also pays $150,000 to acquire a 20% interest in a passive activity that produces a $200,000 loss.a. Assuming that White is a personal service corporation, how will these transactions affect its taxable income?