need help w all 3 please

Question 38 of 75. All of the following statements are true regarding a trade or business EXCEPT: The taxpayer should have evidence that they are engaged in a trade or business The taxpayer must make a profit in the business within the first three years O Atrade or business is an activity carried on primarily to make a profit Taxpayers are considered self-employed if they carry on a trade or business as an independent contractor or a sole proprietor Mark for follow up Question 39 of 75. Fritz is single and self-employed. His only source of income was a net profit of $195,000 from his business. What is the amount of Fritz's self-employment tax? $20,334 $21,702 O $27,553 $29,835 Mark for follow up Question 40 of 75. If an activity is not considered "engaged in for profit" because it does not meet the IRS presumption of profit, the Activity will automatically be considered a hobby with no other recourse for the taxpayer Activity will automatically be considered "engaged in for profit when three of nine profit factors are met. Facts and circumstances may still indicate that the taxpayer has a profit motive. Testing period and losses are suspended, since a taxpayer does need to continue efforts to further the interests of the business to be considered engaged in for profit Mark for follow up Back Save / Return Later Summary Next >