
Jenny spends 32 hours a week, 50 weeks a year, operating a bicycle rental store that she owns at a resort community. She also owns a music store in another city that is operated by a full-time employee. Jenny spends 140 hours per year working at the music store. She elects not to group them together as a single activity under the "appropriate economic unit" standard.
A) Neither store is a passive activity.
B) Both stores are passive activities.
C) Only the bicycle rental store is a passive activity.
D) Only the music store is a passive activity.
E) None of the above.
Correct Answer:
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