Problem:
For 2014, Gray Inc., a closely-held C corporation (not a personal service corporation), has $600,000 of passive activity losses from rental activities, $500,000 of active business income, and $200,000 of portfolio income.
Required:
Question: How much of the passive activity loss may offset other income?
A. 0
B. $600,000
C.$200,000
D.$500,000
Note: Please provide full description.