Rick, a computer consultant, owns a separate business (not real estate) in which he participates. He has one employee who works part-time in the business
a. If Rick participates for 500 hours and the employee participates for 620 hours during the year, Rick qualifies as a material participant.
b. If Rick participates for 550 hours and the employee participates for 2,000 hours during the year, Rick qualifies as a material participant.
c. If Rick participates for 120 hours and the employee participates for 120 hours during the year, Rick does not qualify as a material participant.
d. If Rick participates for 95 hours and the employee participates for 5 hours during the year, Rick probably does not qualify as a material participant.
e. None of the above.
b
RATIONALE: Option a. is incorrect; Rick would have to participate for more than 500 hours for statement a. to be correct (Test 1). Option b. is correct; an individual who participates for more than 500 hours is a material participant regardless of how much others participate (Test 1). Option c. is incorrect; Rick participates for more than 100 hours and this is not less than the participation of any other individual (Test 3). Option d. is incorrect; Rick's participation constitutes substantially all of the participation, even though Rick's participation is less than 100 hours (Test 2).
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Which of the following statements does not reflect LinkedIn's approach to its"People You May Know" campaign?
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Using the above information, total factory overhead costs would be:
Comet Company accumulated the following account information for the year:
Beginning raw materials inventory $6,000
A) $9,800.
B) $16,800.
C) $15,800.
D) $13,000.
E) $7,800.