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Discussion Question 11-13 (LO. 5) Suzanne owns interests in a bagel shop, a lawn and garden store, and a convenience store. Several full-time employees work
Discussion Question 11-13 (LO. 5) Suzanne owns interests in a bagel shop, a lawn and garden store, and a convenience store. Several full-time employees work at each of the enterprises. As of the end of November of the current year, Suzanne has worked 150 hours in the bagel shop, 250 hours at the lawn and garden store, and 70 hours at the convenience store. In reviewing her financial records, you learn that she has no passive investments that are generating income and that she expects these three ventures collectively to produce a loss. Complete the statements below regarding the recommendations you would offer Suzanne as she plans her activities for the remainder of the year. If Suzanne can spend an additional 31 hours in the convenience store activity, she will have the requisite 470 X hours in all of her significant participation activities. Consequently, she would be considered a material participant in the ventures, and the expected losses would be deductible against her active and portfolio income
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