7.Jose, a pilot for Southern Airways, has adjusted gross income of $172,000 before considering the following losses. The passive activity rules disallow the deduction for a loss in which of the following? I. Jose has a $3,500 loss from his ownership interest in Cowco, a feeder-cattle limited partnership. Jose is a general partner and is responsible for day-to-day management decisions. II. Jose has a $2,000 loss from his ownership interest in Swineco, a feeder-pig limited partnership. Jose is a limited partner. a. Only statement I is correct. b. Only statement II is correct. c. Both statements are correct. d. Neither statement is correct. 8.The following statements about cash and accrual method taxpayers are all false except: a. Both cash and accrual basis taxpayers include unearned rent in gross income. b. Both cash and accrual basis taxpayers are taxed on rent paid late when received. c. The timing of dividend income may depend on the record date. d. Constructive receipt is a concept affecting both cash and accrual method taxpayers