If a taxpayer has 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 regular corporation, taxable income from the three activities is a loss of $19,000.
II.	If the taxpayer is an individual and the passive income is related to a rental real estate activity in which the taxpayer is an active participant, taxable income is $11,000.

	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). I understand the first one is correct, but don't understand why the second one is correct as well. Please explain. Thank you