Gabby Owns and Operates a Part-Time Art Gallery,now in Its

question 89

Multiple Choice

Gabby owns and operates a part-time art gallery,now in its fifth year.She views it as a business activity,but she is concerned that the IRS will challenge her classification and consider it a hobby.Her business results,using the cash method of accounting,were net losses in the first and fourth years and small profits in the second and third years.It is now almost year-end and based on projections,the business is showing a small profit of $6,000.Repairs to the security system and to the heating/cooling system were recently completed and these bills total $7,000.When should Gabby pay these bills?

• A)before year-end to get the current year deduction
• B)next year
• C)split into $6,000 this year and $1,000 next year
• D)It does not matter when she pays the bills.The work was performed this year,so the costs will be deducted this year.

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Definitions:

Oocyte

A female gametocyte or germ cell involved in reproduction, known as an immature egg cell.

Ovarian Follicles

Structures in the ovaries that contain a developing egg and produce hormones that regulate the menstrual cycle and fertility.

Fertilization

The union of a sperm cell with an egg cell to form a zygote, initiating the development of a new organism.

Vulva

The external part of the female genitalia, which includes the labia, clitoris, and the openings to the vagina and urethra.