Rick, a Computer Consultant, Owns a Separate Business (Not Real

question 105

Multiple Choice

Rick, a computer consultant, owns a separate business (not real estate) in which he participates.He has one employee who works part-time in the business.

• A)If Rick participates for 500 hours and the employee participates for 620 hours during the year, Rick qualifies as a material participant.
• B)If Rick participates for 550 hours and the employee participates for 2,000 hours during the year, Rick qualifies as a material participant.
• C)If Rick participates for 120 hours and the employee participates for 120 hours during the year, Rick does not qualify as a material participant.
• D)If Rick participates for 95 hours and the employee participates for 5 hours during the year, Rick probably does not qualify as a material participant.
• E)None of these applies here.

---

Definitions:

Selman's Stages

A theory outlining the stages of development of children's ability to understand others' perspectives and social relationships.

Adjustment

The process of adapting or becoming used to a new situation or environment.

Middle Childhood

A developmental stage that typically includes children from ages 6 to 12, characterized by physical, cognitive, and social growth.

Well Liked

Describes someone who is favorable or pleasing to others, often due to their personality, actions, or characteristics.