For the Years 2014 Through 2018 (Inclusive) Mary, a Best-

question 2130

Multiple Choice

For the years 2014 through 2018 (inclusive) Mary, a best- selling author, has been involved in operating an antique store. In 2014, 2015 and 2016 her revenue exceeded the expenses from the activity. In 2017 and 2018, the antique store generated a loss. Which statement is correct?

• A) The activity is a hobby. Mary cannot prove it is a business.
• B) The activity is presumed to be a business. However, the IRS may prove it is a hobby.
• C) The activity is a business. The IRS cannot prove it is a hobby.
• D) The activity is presumed to be a hobby. However, Mary may prove it is a business.

---

Definitions:

Employee Involvement

The practice of involving employees in decision-making and problem-solving processes within an organization, to enhance commitment and productivity.

Preventive Maintenance

Maintenance activities performed regularly on equipment to reduce the likelihood of it failing, focusing on preventing problems before they occur.

Optimal Maintenance Policy

is a strategy developed to ensure that equipment and facilities are kept in the best possible condition, balancing costs and benefits to achieve the most efficient and effective maintenance operations.

Preventive Maintenance

Scheduled maintenance tasks performed on equipment and machinery to prevent unexpected breakdowns and ensure smooth operation.