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Question - In the current year, Violet, Inc., a closely held corporation (not a PSC), has $55,000 of passive activity loss, $80,000 of net active income, and $20,000 of portfolio income. How much is Violet's taxable income for the current year?
a. $45,000
b. $100,000
c. $80,000
d. $20,000
The estimated life is five years and the salvage value is $3,000. Determine the depreciation expense for the first two years using the straight-line method.
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