In 2019, Cindy Is Married and Files a Joint Return

question 6

Multiple Choice

In 2019, Cindy is married and files a joint return.She operates a sole proprietorship in which she materially participates.Her proprietorship generates gross income of $225,000 and deductions of $525,000, resulting in a loss of $300,000.What is Cindy's excess business loss for the year?

• A)$-0-.
• B)$30,000.
• C)$250,000.
• D)$280,000.
• E)None of these.

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Definitions:

Average Variable Cost

The total variable costs (costs that change with production volume) divided by the number of units produced.

Average Product of Labor

The output produced, on average, by one unit of labor, such as one worker or one hour of work.

Marginal Product of Labor

The additional output produced as a result of employing one more unit of labor.

Economies of Scale

The cost advantages that a business obtains due to expansion, where the average cost per unit of output decreases with increasing scale.