Which of the Following Is Not Generally Classified as a Passive

question 71

Multiple Choice

Which of the following is not generally classified as a passive activity?

• A)an activity in which the taxpayer does not materially participate
• B)a limited partnership interest
• C)rental real estate
• D)a business in which the taxpayer owns an interest and works 1,000 hours a year

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Definitions:

ABC

Can refer to Activity-Based Costing, a method of assigning costs to products or services based on the resources they consume.

Activities

In a business context, activities refer to the various tasks, operations or functions performed within the organization to achieve its objectives.

Drive Costs

Strategies or actions taken to reduce, control, or manage expenses in a business to improve profitability.

Plantwide Overhead Rate

A single overhead absorption rate calculated for an entire manufacturing plant, applied uniformly to all units produced.