Question 2: Wes has been an orthopedic surgeon in Atlanta tor 15 years. He would like to devote less time to his medical practice, spend more time with his family, and pay less income tax. His net income from his medical practice has been about $500,000 per year tor the past five years. Wes grew up on a dairy tarm in southeastern Georgia. He has many fond memories ot his childhood and believes a tarm would be an excellent environment tor his three children. Consequently, he purchases a dairy farm about 30 miles trom Atlanta. He hires two full-time employees to handle the milking operations and other part-time employees as needed. In addition, Wes and his tamity participate in performing various activities on the farm. Wes commutes to Atlanta tour days a week to continue his medical practice. Because he is devoting less time to the practice, his net income decreases to $400,000. Wes has a loss ot S7S,000 tor the dairy tarm that he attributes to depressed milk prices and his inexperience at running the tarm_ He considers the medical practice and the dairy tarm to be separate trades or businesses. Therefore, on the Federal income tax return, the $75,000 net loss is offset against the $400,000 net income Assume that the net income and net loss trom the medical practice and the dairy farm, respectively, remain approximately the same tor the next tour years. Is the position adopted by Wes defensible? Discuss.