If Corp. Z above is an S Corporation, business expenses increase to $1,160,000 and 45% of business losses for 2022 are allocated to passive shareholders:

Is Corp. Z permitted to retain cash method? _______________ (Yes/No)

Why? (Yes or No, 1 sentence & Code Section)

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Describe any elections available (Max 2 sentences)

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Give Regulation Section for c above _______________

Can Passive Activity losses offset shareholder wages? _______________

Give Code Section to Part e _______________