Jed Spends 32 Hours a Week, 50 Weeks a Year

question 54

Multiple Choice

Jed spends 32 hours a week, 50 weeks a year, operating a bicycle rental store that he owns at a resort community. He also owns a music store in another city that is operated by a full-time employee. He elects not to group them together as a single activity under the "appropriate economic unit" standard. Jed spends 40 hours per year working at the music store.

• A) Neither store is a passive activity.
• B) Both stores are passive activities.
• C) Only the bicycle rental store is a passive activity.
• D) Only the music store is a passive activity.
• E) None of the above.

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Definitions:

Ultrasound Exam

A diagnostic imaging technique using high-frequency sound waves to create images of structures inside the body.

Blood Test

A laboratory analysis performed on a blood sample to evaluate health and detect disease.

Paternity Testing

The use of genetic fingerprinting to determine if a man is the biological father of a child.

DNA

Deoxyribonucleic acid, the molecule that carries genetic instructions used in the growth, development, functioning, and reproduction of all known living organisms and many viruses.