LO.3 Orange, Inc., earns $250,000 from operations in the current year. Orange also receives $18,000 in dividends and interest on various portfolio investments. During the year, Orange pays $150,000 to acquire a 30%interest in a passive activity that produces a $200,000 loss. How will these facts affect Orange’s taxable income, assuming the corporation is:

a. A personal service corporation?

b. A closely held (non-personal service) C corporation?