Which of the Following Individuals Is Involved in a Trade

question 46

Multiple Choice

Which of the following individuals is involved in a trade or business?
I.Lil owns a farm near Lafayette, Indiana. She leases the property to Cal, who operates the farm for himself. Lil receives 10% of Cal's net income as part of the lease agreement but has no responsibilities for the farming operation.
II.Lorraine owns a warehouse located in Brooklyn NY. She paid $250,000 for the real estate several years ago. It is now appraised at over $1,000,000, but she still uses the building only to store her painting collection.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Simple Words

The use of easy-to-understand, basic vocabulary intended to convey information clearly and directly.

Child-directed Speech

A special form of speech characterized by exaggerated intonation, clarity, simplicity, and repetition, used by adults when communicating with young children.

High-pitched Voice

A voice that has a high frequency, often perceived as shrill or squeaky.

Broca's Area

An area situated in the dominant hemisphere's frontal lobe, associated with the production of speech.