16. Jung owns and operates a business with two separate and distinct divisions. He participates for 750 hours in Division 1 and 90 hours in Division 2. Division 1 produces $400,000 of income and Division 2 incurs a $100,000 loss. Jung employs a full-time employee in each division who each work 2,000 hours per year. Which of the following is true? a. If Jung elects to treat both divisions as a single activity, he cannot offset the $100,000 loss against the $400,000 income. b. Jung may not treat Division 1 and Division 2 as separate activities because they are parts of one business. c. If Jung elects to treat the two divisions as separate activities, he can offset the $100,000 loss against the $400,000 income. d. If Jung elects to treat both divisions as a single activity, he can offset the $100,000 loss against the $400,000 income. e. None of these is correct