Jed Spends 32 Hours a Week,50 Weeks a Year,operating a Bicycle

question 45

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.

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Definitions:

Equivalent Statements

Statements that are logically similar in that they always have the same truth value in every possible scenario.

Conjunction

In logic, a connective that combines multiple statements or propositions to form a single proposition that is true only if all its components are true.

Contradictory Statements

Assertions that are directly opposed to each other, so that if one is true, the other must be false.

Truth Tables

A mathematical table used in logic to compute the functional values of logical expressions on each of their functional arguments, showing all possible conditions.