Riva Works at a Full-Time Job,but Also Restores Her Antique

question 86

Multiple Choice

Riva works at a full-time job,but also restores her antique doll collection and sells them on eBay.She received $10,000 of sales revenue and paid $12,000 of supplies expense.A number of factors must be weighed to determine the appropriate classification of the activity.Depending on that classification,the net effect on her taxable income will be

• A) \[\begin{array} { |l | l| }
• \hline\text { Business } & \text { Hobby } \\
• \hline \text { a reduction of } \$ 2,000&\text {. a reduction of } \$ 2,000 \text {. }\\\hline
• \end{array}\]
• B) \(\begin{array}{|l|l|}
• \hline\text { Business } & \text { Hobby } \\
• \hline \text { a reduction of } &\$ 2,000 \text { a net change } \$ 0\\\hline
• \end{array}\)
• C) \[\begin{array} {| l | l |}
• \hline \text { Business } & \text { Hobby } \\
• \hline & \text { an increase of } \\
• \text { a net change of } \$ 0 \text {. } \$ 2,000 & \$ 10,000 .\\\hline
• \end{array}\]
• D) \[\begin{array} {| l | l |}
• \hline \text { Business } & \text { Hobby } \\
• \hline & \text { an increase of } \\
• \text { a reduction of } \$ 2,000 & \$ 10,000 .\\\hline
• \end{array}\]

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Definitions:

Standard Error

A measure of the dispersion or spread of sample means around the population mean in statistics.

Simple Random Sampling

A sampling method where each member of a population has an equal chance of being included in the sample.

Confidence Interval

A range of values, derived from the sample data, that is likely to contain the value of an unknown population parameter.

Standard Deviation

A metric indicating the degree of spread or distribution among a collection of numbers.