Which of the Following Factors Are Used to Aid in Determining

question 11

Multiple Choice

Which of the following factors are used to aid in determining whether an activity that earns income is profit motivated and should be treated as a business or is subject to the hobby loss rules?
I.The amounts of occasional profits, if any.
II.Taxpayer's success in similar activities.
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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:

Familywise Error

The probability of making one or more Type I errors across a set of statistical tests.

Critical Value

A point on the scale of the test statistic beyond which we reject the null hypothesis; it determines the cut-off point for significance in hypothesis testing.

Dunnett Test

A statistical test used to compare multiple groups against a single control group without increasing the type I error rate.

Familywise Error

The risk of obtaining a false discovery, or type I error, when multiple tests of hypotheses are carried out.