Ned, a College Professor, Owns a Separate Business (Not Real

question 63

Multiple Choice

Ned, a college professor, owns a separate business (not real estate) in which he participates in the current year.He has one employee who works part-time in the business.

• A)If Ned participates for 120 hours and the employee participates for 120 hours during the year, Ned does not qualify as a material participant.
• B)If Ned participates for 95 hours and the employee participates for 5 hours during the year, Ned probably does not qualify as material participant.
• C)If Ned participates for 500 hours and the employee participates for 520 hours during the year, Ned qualifies as material participant.
• D)If Ned participates for 600 hours and the employee participates for 2,000 hours during the year, Ned qualifies as a material participant.
• E)None of these applies.

---

Definitions:

Electroconvulsive Treatment

A psychiatric treatment in which seizures are electrically induced in anesthetized patients for therapeutic effect, primarily used in severe cases of depression.

Schizophrenic Symptoms

Schizophrenic symptoms include a range of psychological signs such as hallucinations, delusions, disorganized thinking, and emotional flatness, associated with schizophrenia.

Depressive Symptoms

Manifestations of depression that may include prolonged sadness, lack of energy, sleep disturbances, and a feeling of hopelessness.

Prefrontal Lobotomy

A surgical procedure once used to treat mental disorders, involving the severing of connections in the brain's prefrontal lobe.