For the Years 2014 Through 2018 (Inclusive) Max, a Surgeon

question 556

Multiple Choice

For the years 2014 through 2018 (inclusive) Max, a surgeon, has been involved in bowling competitions. Only in 2017 and 2018 did his revenue exceed the expenses from the activity. Which statement is correct?

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

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Definitions:

GEO

Geostationary Earth Orbit, a type of orbit around the Earth that allows satellites to appear stationary relative to a position on the Earth.

LEO

Low Earth Orbit, an orbit around Earth with an altitude between 160 kilometers and 2,000 kilometers, used for communication satellites.

MEO

Medium Earth Orbit, a type of orbit around Earth typically used for satellites that provides broader coverage than low Earth orbit.

GPS System

A global navigation satellite system that provides geolocation and time information to a GPS receiver anywhere on or near the Earth.