Which of the Following People Is Currently Engaged in a Trade

question 120

Multiple Choice

Which of the following people is currently engaged in a trade or business?
I.Barry spends 4 hours a day 5 days a week managing his investment portfolio. He watches the market and buys and sells securities when he thinks the market is right. His investment strategy is to realize income from dividends and long-term gains from holding investments for appreciation in value.
II.Jennifer is a full-time realtor, and she owns a house that she rents to Barry and his family for $900 a month. Jennifer provides for the repairs and maintenance of the house, and she stops by monthly to collect the rent and visit with Barry and his family.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Appeals

The process of seeking a higher court's review of a lower court's decision in hopes of overturning or modifying the decision.

Garnishment

A legal process used by a creditor to collect a debt by seizing property of the debtor (such as wages) that is being held by a third party (such as the debtor’s employer).

Domesticated

In legal terms, this involves the process by which a foreign judgment or legal decision is recognized and can be enforced within the jurisdiction of another country or state.

Lapses

Occurrences where something becomes invalid because a condition has not been met or time has expired, often used in insurance for policy expirations.