(Solved): Show me the steps to solve Questions are from CPA exams and each has a suggested answer highlighted ...

Show me the steps to solve Questions are from CPA exams and each has a suggested answer highlighted. Your assignment is to prepare a one-page (approximately) statement of reasons the suggested answer is correct. Cite the relevant section(s) of the Internal Revenue Code that may apply and any other authorities such as IRS guidance. Your opinion, based on facts and authorities, is very welcome. A taxpayer employed full-time as an engineer has the following income items: Self-employment income

Rental income 15,000 Dividend income 2,000 Long-term capital gain 1,500 Short-term capital loss 1,000 What amount is the taxpayer's passive income? A.

B.

C.

D.