Rene owns four small businesses. Rene spends the following number of hours this
ID: 2462658 • Letter: R
Question
Rene owns four small businesses. Rene spends the following number of hours this year working in those businesses which is more than any other employee of the businesses: Business A, 105 hours; Business B, 130 hours; Business C, 120 hours; Business D, 99 hours. Which of the following statements is correct?
a. Businesses A, B, and C are material participation activities.
b. Businesses A, B, C, and D are all significant participation activities.
c. Businesses A, B, and C are significant participation activities.
d. Both a. and c. are correct.
Explanation / Answer
d. Both a. and c. are correct.
Since in business D hours spent is less than 100 Hours therefore b. Businesses A, B, C, and D are all significant participation activities. is incorrect.