Indicate whether the following would be counted in applying the material participation standard.

Classify each item as "Yes" or "No" regarding which would be counted in applying the material participation standard.

a.	Supervising employees
b.	Working as a salesperson
c.	Providing services to customers
d.	Having your spouse work as a salesperson
e.	Examining financial statements in a nonmanagerial capacity
f.	Selling goods
g.	Any other activity associated with the day-to-day operations of a business

John, an engineer, operates a separate business that he acquired eight years ago. This year, he participates 85 hours in the business and it incurs a loss of $34,000.

Based on each statement below, select either "Qualifies" or "Does not qualify" as circumstances necessary for John to claim an active loss.

a.	If the separate business has other employees and John's participation is at least 50% of the total hours, he is entitled to an active loss deduction.
b.	If John is the only individual who participates in the separate business, he will be entitled to an active loss deduction.
c.	If the separate business has other employees, and the total hours of all significant participants equaled 550 hours, he is entitled to an active loss deduction.