Jim owns four separate activities. He elects not to group them together as a single activity under the appropriate economic unit standard. Jim participates for 140 hours in Activity A, 130 hours in Activity B, 140 hours in Activity C, and 100 hours in Activity D. He has one employee who works 135 hours in Activity D. Which of the following statements is correct?

1) Jim is a material participant with respect to Activities A, B, C and D.

2) Losses from all of the activities can be used to offset Jim's active income.

3) Activities A, B, C, and D are all significant participation activities.

4) Jim is a material participant with respect to Activities A, B and C.