During the Current Year,Ethan Performs Personal Services as Follows: 800

question 61

Multiple Choice

During the current year,Ethan performs personal services as follows: 800 hours in his information technology consulting practice,625 hours in a real estate development business,and 510 hours in a condominium leasing operation.He expects that losses will be realized from the two real estate ventures while his consulting practice will show a profit.Ethan files a joint return with his wife whose salary is $125,000.The income and losses from the following ventures is considered active and not subject to the passive loss limitations:

• A)Only the information technology consulting practice.
• B)Only the information technology consulting practice and the real estate development business.
• C)Only the information technology consulting practice and the condominium leasing operation.
• D)All three of the ventures are considered active and not subject to the passive loss limitations.
• E)None of the above.

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Definitions:

World Systems Theory

A multidisciplinary, macro-scale approach to world history and social change that suggests there is a world economic system in which some countries benefit while others are exploited.

Dependency Theory

The global theory maintaining that industrialized nations hold less-industrialized nations in a dependent relationship that benefits the industrialized nations at the expense of the less-industrialized ones.

Modernization Theory

A theory that suggests societies progress through a series of stages toward stability, democracy, and prosperity, often through technology and industrialization.

Functionalist Theory

A sociological perspective that interprets each part of society in terms of how it contributes to the stability and functionality of the whole society.