Jon Owns an Apartment Building in Which He Is a Material

question 124

Multiple Choice

Jon owns an apartment building in which he is a material participant and also owns a computer consulting business. Of the 2,000 hours he spends on these activities during the year, 55% of the time is spent operating the apartment building and 45% of the time is spent in the computer consulting business.

• A) The computer consulting business is a passive activity but the apartment building is not.
• B) The apartment building is a passive activity but the computer consulting business is not.
• C) Both the apartment building and the computer consulting business are passive activities.
• D) Neither the apartment building nor the computer consulting business is a passive activity.
• E) None of the above.

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Definitions:

Skills

The abilities or expertise acquired through training or experience that can be applied effectively to specific tasks or situations.

Old-age Transition Stage

A phase in human development characterized by the shift into older adulthood, often involving significant personal, social, and health adjustments.

Mortality

The state of being mortal or susceptible to death; it can also refer to the death rate within a population.

Late Adulthood Transition

Late adulthood transition refers to the stage in human development characterized by changes and adjustments in lifestyle, roles, and health that occur in older age, typically considered to begin around the age of 65.