Ned, a College Professor, Owns a Separate Business (Not Real

question 20

Multiple Choice

Ned, a college professor, owns a separate business (not real estate) in which he participates in the current year. He has one employee who works part-time in the business.

• A) If Ned participates for 120 hours and the employee participates for 120 hours during the year, Ned does not qualify as a material participant.
• B) If Ned participates for 95 hours and the employee participates for 5 hours during the year, Ned probably does not qualify as material participant.
• C) If Ned participates for 500 hours and the employee participates for 520 hours during the year, Ned qualifies as material participant.
• D) If Ned participates for 600 hours and the employee participates for 2,000 hours during the year, Ned qualifies as a material participant.
• E) None of the above.

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Definitions:

Poetic Passages

Sections of text that embody the characteristics of poetry, such as rhythm, imagery, and heightened emotional impact.

Formal Phrases

The use of conventional or traditional language styles often found in official, business, or academic settings.

News Release

A written statement to the media to announce something newsworthy, aiming to get coverage and inform the public.

Self-Congratulatory

Describing an expression of one's own achievements or qualities in a way that shows excessive pride.