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.

8.7.1