GROUPING OF PASSIVE ACTIVITIES (1 OF 2)
01.Core Concepts
• Passive activities may be grouped and treated as a singe economic unit if they are an “appropriate economic unit” • Factors considered in grouping activities into appropriate economic units: 1. Similarity/difference in types of business 2. Extent of common control 3. Extent of common ownership 4. Geographic location 5. Interdependencies between various activities