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Hummingbird Corporation, a closely held C corporation that is not a PSC, has $240,500 of net active income, $96,200 of portfolio income, and a $264,550 loss from a passive activity. Compute Hummingbird’s taxable income for the year.
$________

Sagot :

abiolataiwo2015

Answer:

$72,150

Explanation:

Calculation to determine Hummingbird’s taxable income for the year

Using this formula

Taxable income =Net active income +Portfolio income-Passive loss

Let plug in the formula

Taxable income=$240,500+$96,200-$264,550

Taxable income=$72,150

Therefore Hummingbird’s taxable income for the year is $72,150

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