Ahmad Owns Four Activities

question 64

Multiple Choice

Ahmad owns four activities. He participated for 120 hours in Activity A, 150 hours in Activity B, 140 hours in Activity C, and 100 hours in Activity D. Which of the following statements is correct?

• A) Activities A, B, C, and D are all significant participation activities.
• B) Activities A, B, and C are significant participation activities.
• C) Ahmad is a material participant with respect to Activities A, B, and C.
• D) Ahmad is a material participant with respect to Activities A, B, C, and D.
• E) None of the above.

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Definitions:

Child Support Payments

Child Support Payments are periodic payments made by a noncustodial parent to support a child’s living expenses after a divorce or separation.

Series I Savings Bonds

U.S. government savings bonds that earn interest based on a combination of a fixed rate and an inflation rate.

Qualified Higher Education Expenses

Expenses associated with attendance at a post-secondary educational institution, which may be eligible for tax benefits.

AGI

Adjusted Gross Income, which is an individual's total gross income minus specific deductions allowed by the IRS.