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:

Swedish Surname

A family name originating from Sweden, often indicating ancestral or geographical origins.

Discriminatory Behavior

Actions or attitudes that unfairly differentiate or exclude individuals based on personal characteristics, such as race, gender, or age.

Ingroup

A social group to which a person psychologically identifies as being a member, often used to describe groups formed based on shared interests or identities.

Outgroup

An outgroup is a social group to which an individual does not belong or identify, often leading to prejudice or discrimination against its members by those within the ingroup.