Question
Ned, a college professor, owns a separate business (not real estate) in which he participates in the current year. He has one employee who works
Ned, a college professor, owns a separate business (not real estate) in which he participates in the current year. He has one employee who works part-time in the business.
| a. | If Ned participates for 120 hours and the employee participates for 120 hours during the year, Ned does not qualify as a material participant. | |
| b. | If Ned participates for 95 hours and the employee participates for 5 hours during the year, Ned probably does not qualify as material participant. | |
| c. | If Ned participates for 500 hours and the employee participates for 520 hours during the year, Ned qualifies as material participant. | |
| d. | If Ned participates for 600 hours and the employee participates for 2,000 hours during the year, Ned qualifies as a material participant. | |
| e. | None of these applies. |
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Information Systems Control And Audit
Authors: Et Al. Hyo-Jeong Kim, Michael Mannino, Compiled By Koros Press Editorial Board
1st Edition
1781639426, 978-1781639429
