Discussion Question 11-5 (LO. 3) Carlos owns an interest in an activity that produces a $100,000 loss during the year. Complete the statements below regarding whether Carlos would prefer to have the activity classified as active or passive. Generally, if an activity is classified as passive, a loss from that activity can offset active, passive, and portfolio x income. If the activity is classified as active, the loss can offset income from only active and portfolio X . Therefore, Carlos would prefer to have the activity classified as active