A taxpayer had the following for the current year:

	Active	Portfolio	Passive
	Income	Income	Income
Income	$75,000	$22,000	$55,000
Deductions	(45,000)	(16,000)	(110,000)
Income(Loss)	$30,000	$6,000	$(55,000)

I.	If the taxpayer is a closely held corporation, taxable income from the three activities is income of $6,000.
II.	If the taxpayer is an individual and the passive income is not related to a rental real estate activity, taxable income is $36,000.

	a.	Only statement I is correct.
	b.	Only statement II is correct.
	c.	Both statements are correct.
	d.	Neither statement is correct.

according to the test bank 2016, the answer is (c). Please explain. Thank you!