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 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. Which of the following statements is correct? A. Neither store is a passive activity. B. Both stores are passive activities. C. Only the DVD rental store is a passive activity. D. Only the music store is a passive activity. E. None of the above.

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