Ahmad owns four activities. He participated for 120 hours in Activity A, 150 hours in Activity B, 140 hours in Activity C, and 100 hours in Activity D. Which of the following statements is correct?
a. Activities A, B, C, and D are all significant participation activities.
b. Activities A, B, and C are significant participation activities.
c. Ahmad is a material participant with respect to Activities A, B, and C.
d. Ahmad is a material participant with respect to Activities A, B, C, and D.
e. None of the above.
b
RATIONALE: Statement b. is correct. Activities A, B, and C are all significant participation activities. A significant participation activity is one in which the individual's participation exceeds 100 hours during the year. However, the material participation standard is not met because total participation in significant participation activities (120 + 150 + 140) does not exceed 500 hours.
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