Abed spent $1,000$ hours during the year doing management tasks for a partnership he's a part owner of$.$ The tasks mainly included personnel decisions, strategic planning, and project management. The partnership also has a professional management team who each work $2,000$ hours or more during the year. Which of the following is TRUE for Abed based on the material participation rule?

Group of answer choices

The material participation test doesn't apply, this is a portfolio asset

Since Abed spent more than $500$ hours he's considered to materially participate

Since Abed is an owner he's automatically a passive participant

Since others participate more than Abed he's deemed to be a passive participant