Passive Activities

In January $2022,$ Julie started some web$-$based activities. She started selling hand drawn caricature drawings on Etsy and eBay $($using photos provided by customers$).$ In addition, she started making some money as her Instagram and TikTok drawings and videos have gained thousands of followers. Julie spends about $7$ hours per week making and selling drawings plus another $2$ hours on social media activities.

a$.$ Under the $469$ regulations, how many activities does Julie have? Explain. If she has more than one option, explain them all and the pros and cons of each.

b$.$ Assume in $2023$ that Juie pays contractor Henry to help with drawings and send them to the customers. Henry will spend about $200$ hours in $2023$ on this work for Julie. Julie will spend about $160$ hours in $2023$ finding customers. Will Julie be a material participant in $2023?$ Explain.