For the Years 2011 Through 2015 (Inclusive)Mary,a Best-Selling Author,has Been

question 64

Multiple Choice

For the years 2011 through 2015 (inclusive) Mary,a best-selling author,has been involved in operating an antique store.In 2011,2012 and 2013 her revenue exceeded the expenses from the activity.In 2014 and 2015,the antique store generated a loss.Which statement is correct?

• A)The activity is a business.The IRS cannot prove it is a hobby.
• B)The activity is a hobby.Mary cannot prove it is a business.
• C)The activity is presumed to be a business.However,the IRS may prove it is a hobby.
• D)The activity is presumed to be a hobby.However,Mary may prove it is a business.

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Definitions:

Collude

When two or more parties come together to limit open competition by deceiving or misleading others about their rights and obligations.

Uncertain

Lacking predictability, assurance, or clarity about outcomes or consequences.

Game Theory Matrix

A tabular representation used in game theory to display the payoffs or outcomes for different strategies chosen by players in a strategic game.

Outcome

The result or effect of an action, decision, or situation, often evaluated in terms of success, failure, or impact.