Rick,a Computer Consultant,owns a Separate Business (Not Real Estate)in Which

question 13

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.

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Definitions:

Competitive Salaries

Wage offerings that are attractive in the job market to lure and retain top talent, often compared to what is offered by other organizations within the same industry.

Worth

The usefulness or significance of something, assessed in terms of its qualities or by how much it can contribute to a specified goal.

Volunteer Activities

Unpaid tasks or services conducted by individuals or groups, often aimed at benefiting the community or a charitable cause.

Corporation For National And Community Service

A federal agency that supports volunteer service and service-learning programs across the United States, aiming to improve lives and communities.