Jed spends 32 hours a week, 50 weeks a year, operating a bicycle rental store that he owns at a resort community. He also owns a music store in another city that is operated by a full-time employee. Jed spends 40 hours per year working at the music store. He elects not to group them together as a single activity under the appropriate economic unit standard.

a. Is Jed a material participant in the bicycle rental store and is it a passive or active activity? b. Is Jed a material participant in the music store and is it a passive or active activity?