Problem 6-25 (LO. 6) In the current year, White, Inc., earns $400,000 from operations and receives $36,000 of interest income from various portfolio investments. White also pays $150,000 to acquire a 20% interest in a passive activity that produces a total $200,000 loss. a. Assuming that White is a personal service corporation, how will these transactions affect its taxable income? A personal service corporation is allowed to offset passive activity losses against neither active nor portfolio income . Therefore, White's taxable income is $ Feedback Check My Work b. Assuming that White is closely held but not a personal service corporation, how will these transactions affect its taxable income? A closely held, non-personal service corporation is allowed to offset passive activity losses against active income, but not against portfolio income . Therefore, White's taxable income is $