Final answer:
Portfolio income includes income from investments such as dividends, interest, and capital gains, with royalties not derived in the ordinary course of trade or business being an example. It does not include active earnings like commissions, guaranteed payments for services, or bonus payments.
Step-by-step explanation:
Portfolio income includes various types of income that come from investments rather than from wages or business operations.
This can include income such as dividends, interest, and capital gains from the sale of investment assets. Among the options provided, portfolio income includes royalties not derived in the ordinary course of a trade or business.
This is because such royalties are considered a return on investment, similar to receiving dividends or interest, and are not linked to active business activities. Commission for a stockbroker, guaranteed payments for services by a partner to the partnership, and quarterly bonus payments typically would not fall under portfolio income; instead, they are considered earned income from active participation in a business or job.