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:

Action-oriented Statements

Phrases designed to motivate or direct action, often used in persuasive writing and speeches.

Customer Engagement

The process of building a relationship with customers through various forms of interaction and communication.

Falsifying Information

The act of deliberately changing or fabricating data or records with the intent to deceive.

Productive Ways

Efficient and effective methods or strategies for achieving tasks, goals, or objectives.