If a Taxpayer Has the Following for the Current Year

Multiple Choice

If a taxpayer has the following for the current year:
?
$$\begin{array} { l c c c } & \text { Active } & \text { Portfolio } & \text { Passive } \\& \underline { \text { Income} } & \underline { \text { Income } } & \underline { \text { Income } } \\\text { Income } & \$ 75,000 & \$ 22,000 & \$ 55,000 \\\text { Deductions } & ( 45,000 ) & ( 16,000 ) & ( 110,000 ) \\\text { Income(Loss) } & \$ 30,000 & \$ 6,000 & \$ ( 55,000 ) \end{array}$$


I.If the taxpayer is a regular corporation, taxable income from the three activities is a loss of $19,000.
II.If the taxpayer is an individual and the passive income is related to a rental real estate activity in which the taxpayer is an active participant, taxable income is $11,000.
?

A) Only statement I is correct.
B) Only statement II is correct.
C) Both statements are correct.
D) Neither statement is correct.