Sheila owns four separate activities. She elects not to group them together as a single activity under
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Question:
Sheila owns four separate activities. She elects not to group them together as a single activity under the "appropriate economic unit" standard. Sheila participates for 101 hours in Activity A, 145 hours in Activity B, 125 hours in Activity C, and 130 hours in Activity D. She has one employee, who works 400 hours in Activity D. Which of the following statements is incorrect?
SHEILA IS A MATERIAL PARTICIPANT WITH REPSECT TO ACTIVITIES A,B,C AND D
SHEILA IS NOT A MATERIAL PARTICIPANT WITH RESPECT TO ACTIVITY D
ACTIVITIES A,B,C, AND D ARE ALL SIGNIFICANT PARTICIPATION ACTIVITIES
LOSSES FROM ALL OF THE ACTIVITIES CAN BE USED TO OFFSET SHEILA'S ACTIVE INCOME
NONE OF THE ABOVE STATEMENTS ARE CORRECT
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