Calculate indigos taxable income for 2011

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Indigo Inc. a personal service corporation has the following types of income and losses for 2011. 
Active Income = 325,000
Portfolio income = 49,000
Passive loss = 333,000
a. Calculate Indigos taxable income for 2011.
b. Assume that instead of being a personal service corporation, Indigo is a closely held corporation. Calculate Indigo's taxable income for 2011. 
c. Would the answer in (b) change if the passive loss is only 320,000 rather than 333,000? 

Reference no: EM13231652

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