John's Corporation has $40,000 in portfolio income and $50,000 of active income during the year, but has a carryover loss of $70,000 from a passive activity investment he bought several years ago. Which of the following statements is correct? Johns current deduction for passive losses is $50,000 ifit is a closely held C corporation that is not a personal service corporation (2) John's current deduction for passive losses is SO if it is a personal service corporation. a. Only statement 1. O b. Only statement 2 o c. Both statements 1 and 2 O d. Neither statement 1 or 2