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Question Content AreaPaula owns four separate activities. She elects not to group them together as a single activity under the appropriate economic unit standard. Paula

Question Content AreaPaula owns four separate activities. She elects not to group them together as a single activity under the "appropriate economic unit" standard. Paula participates for 130 hours in Activity A,115 hours in Activity B,260 hours in Activity C, and 100 hours in Activity D. She has one employee, who works 125 hours in Activity D. Which of the following statements is correct?
a. Paula is not a material participant with respect to Activities A, B, C, and D.
b. Paula is a material participant with respect to Activities A, B, C, and D.
c. Activities A, B, C, and D are all significant participation activities.
d. None of these choices are correct.

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