25. LO6, 7 Which of the following would be a passive activity? Explain.

a. Kevin is a limited partner in Marlin Bay Resort and owns a 15 percent interest in the partnership. b. Tom owns a 15 perdent interest in a real estate development firm. He materi- ally participates in the management and operation of the business. c.Jasmine owns and operates a bed-and-breakfast.

d. Felicia owns a 25 percent working interest in an oil and gas deposit.

e. Assume the same facts as in part d, except that Felicia owns a 25 percent interest in a partnership that owns a working interest in an oil and gas deposit. She does not materially participate in the management and operation of the partnership.

25. LO6, 7 Which of the following would be a passive activity? Explain. a. Kevin is a limited partner in Marlin Bay Resort and owns a 15 percent interest in the partnership. b. Tom owns a 15 perdent interest in a real estate development firm. He materially participates in the management and operation of the business. c. Jasmine owns and operates a bed-and-breakfast. d. Felicia owns a 25 percent working interest in an oil and gas deposit. c. Assume the same facts as in part d, except that Felicia owns a 25 percent interest in a partnership that owns a working interest in an oil and gas deposit. She does not materially participate in the management and operation of the partnership