Jed Spends 32 Hours a Week, 50 Weeks a Year

question 39

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 these is correct.