Which of the following is true regarding losses arising from passive activities? a. The passive loss rules were aimed at investors in limited partnerships; consequently, the rules do not apply if the loss arises from an S corporation. b. Passive losses that were not deductible in prior years can be deducted in the year in which the taxpayer sells his entire interest. c. Losses are deductible if the taxpayer can establish that he satisfies either the material participation test or, alternatively, the active participation test. d. All of the above statements are true. e. None of the above statements is true.