Which of the Following Is Not Relevant in Determining Whether

question 49

Multiple Choice

Which of the following is not relevant in determining whether an activity is profit-seeking or a hobby?

• A) Whether the activity is enjoyed by the taxpayer.
• B) The expertise of the taxpayers or their advisers.
• C) The time and effort expended.
• D) The relationship of profits earned and losses incurred.
• E) All of the above are relevant factors.

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Definitions:

Calories

Calories are units of energy used to quantify the amount of energy stored in food and how much energy is utilized by the body.

Sugar

A sweet-tasting, soluble carbohydrate found in many plants, which is commonly used as a sweetener in food.

Slope

The measure of the steepness or incline of a line, defined as the ratio of the vertical change to the horizontal change between two points on the line.

API Gravity Degrees

A measure used in the petroleum industry that expresses the density of petroleum liquids relative to water; higher API gravity indicates a lighter oil.