Question Content AreaGreen Corporation earns active income of $$50,000$ and receives $$40,000$ in dividends during the year. In addition, Green incurs a loss of $$70,000$ from an investment in a passive activity acquired several years ago. Consider the following two statements:

$(1)$ Green's current deduction for passive activity losses is $$50,000$ if it is a closely held C corporation that is not a personal service corporation.

$(2)$ Green's current deduction for passive activity losses is $$0$ if it is a personal service corporation.

Which of the following answers is correct?

a$.$ Only statement $1.$

b$.$ Only statement $2.$

c$.$ Both statements $1$ and $2.$

d$.$ Neither statement $1$ or $2.$