Jon Owns an Apartment Building in Which He Is a Material

question 33

Multiple Choice

Jon owns an apartment building in which he is a material participant and 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 these.

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Definitions:

Emission Rates

The quantity of pollutants released into the atmosphere by a specific source over a given period.

Innocent Landowner

A property owner who is not responsible for any environmental damage caused by previous owners.

SARA

An abbreviation for the Superfund Amendments and Reauthorization Act, a 1986 U.S. federal law designed to address cleanup of hazardous waste sites.

Previous Ownership

The state or fact of owning something before the current holder, often relevant in determining the legality or history of property or goods.