Sullivan, a pilot for northern airlines, has adjusted gross income of $92,000 before considering the following losses. the passive activity rules disallow the deduction for a loss in which of the following?
i.

sullivan has a $4,500 loss from his ownership interest in cowco, a feeder-cattle limited partnership. sullivan is a general partner and is responsible for day-to-day management decisions.

ii.

sullivan has a $7,000 loss from his ownership interest in swineco, a feeder-pig limited partnership. sullivan is a limited partner.



a.

only statement i is correct.

b.

only statement ii is correct.

c.

both statements are correct.

d.

neither statement is correct.