Complete the following statements regarding at-risk and passive loss rules for S corporations.

For S corporations, the at-risk rules apply to the _____ (corporation; shareholders) therefore, an amount at-risk _______ (is; is not) determined separately for each shareholder. The amount of the corporate losses that are passed through and deductible by the shareholders ________ (is; is not) affected by the amount the corporation has at-risk. S corporations ______(are; are not) directly subject to the limits of 469, but corporate rental activities _______ (are; are not) inherently passive. However, other activities of an S corporation may be passive unless the ______ (corporation; shareholders) materially participate(s) in operating the business.