For the Years 2013 Through 2017 (Inclusive)Max,a Surgeon,has Been Involved

question 24

Multiple Choice

For the years 2013 through 2017 (inclusive) Max,a surgeon,has been involved in bowling competitions.Only in 2016 and 2017 did his revenue exceed the expenses from the activity.Which statement is correct?

• A)The activity is a business.The IRS cannot prove it is a hobby.
• B)The activity is a hobby.Max cannot prove it is a business.
• C)The activity is presumed to be a business.However,the IRS may prove it is a hobby.
• D)The activity is presumed to be a hobby.However,Max may prove it is a business.

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Definitions:

Corporate Downsizing

The process whereby companies reduce their workforce to improve efficiency and reduce costs.

Pension Plans

Financial programs that provide income to individuals upon retirement, funded during their working years.

Mental Representations

Internal images or symbols of objects and events that occur in one's mind, forming the basis of thought and memory.

Inductive Logic

A method of reasoning in which conclusions are drawn from a set of observations or data, potentially leading to generalizations.