Constance owns a boutique. During the current year, she has a gross income of $400,000 and allowable deductions related to the business of $425,000 1. Constance has incurred a transaction loss, which represents her unrecovered cost of capital 11. Constance has suffered an annual loss, which may be carried forward indefinitely Oa. Only statement. It is correct Ob. Only statement is correct Oc Both statements are connect Od. None of the two statements are correct During the current year, Aimee has a business income of $30,000, an Income from passive activity X of $15,000, and a loss from passive activity Y of $25,000. Determine the tax consequences of these events. 1 The loss of $15,000 from passive activity is deductible from the income of $15,000 from passive activity X 11. Any passive loss that is not deducted in the current year is a suspended loss. Oa. Only woment it is correct Ob. Only statement is correct Oc. Hochstatements are correct. Od. None of these statements are correct