During the Current Year, Ethan Performs Personal Services as Follows

question 40

Multiple Choice

During the current year, Ethan performs personal services as follows: 800 hours in his information technology consulting practice, 625 hours in a real estate development business, and 510 hours in a condominium leasing operation.He expects that losses will be realized from the two real estate ventures and that his consulting practice will show a profit.Ethan files a joint return with his spouse whose salary is $125,000.The income and losses from the following ventures are considered active and not subject to the passive activity loss limitations:

• A)Only the information technology consulting practice.
• B)Only the information technology consulting practice and the real estate development business.
• C)Only the information technology consulting practice and the condominium leasing operation.
• D)All three of the ventures are considered active and not subject to the passive activity loss limitations.
• E)None of these.

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Definitions:

Low-Context Countries

Countries where communication is explicit, messages are direct, and social structures are less significant in conveying understanding.

Written Words

Text that has been recorded in some form, whether digitally or on a physical medium, allowing for communication, expression, and documentation.

Spoken Words

Verbal communication using language or sounds to convey messages or express thoughts.

Low-Context Cultures

Cultures where communication is direct, explicit, and relies less on context, background, and non-verbal cues for understanding.