Which of the Following Must Be Classified as "Portfolio Income

Multiple Choice

Which of the following must be classified as "portfolio income?"
I.Dividend income from an investment in Lincoln Corp. common stock.
II.Royalty income from the ownership of the mineral rights on land. The taxpayer does not share the expenses with the extraction company.
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A) Only statement I is correct.
B) Only statement II is correct.
C) Both statements are correct.
D) Neither statement is correct.