Q- Joe owns a business with two separate departments. Department A produces $100,000 of income and Department B incurs a $60,000 loss. Joe participates for 550 hours in Department A and 100 hours in Department B. He has full-time employees in both departments. and why? a. If Joe elects to treat both departments as a single activity, he cannot offset the $60,000 loss against the $100,000 income. b. Joe may not treat Department A and Department B as separate activities because they are parts of one business. c. If Joe elects to treat the two departments as separate activities, he can offset the $60,000 loss against the $100,000 income. d. If Joe elects to treat both departments as a single activity, he can offset the $60,000 loss against the $100,000 income. e. None of the above.
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Q- Joe owns a business with two separate departments. Department A produces $100,000 of income and Department B incurs a $60,000 loss. Joe participates for 550 hours in Department A and 100 hours in Department B. He has full-time employees in both departments. and why?
a. If Joe elects to treat both departments as a single activity, he cannot offset the $60,000 loss against the $100,000 income. b. Joe may not treat Department A and Department B as separate activities because they are parts of one business. c. If Joe elects to treat the two departments as separate activities, he can offset the $60,000 loss against the $100,000 income. d. If Joe elects to treat both departments as a single activity, he can offset the $60,000 loss against the $100,000 income. e. None of the above.
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