Wu, Who Is Single, Reports the Following Items for 2019

question 57

Multiple Choice

Wu, who is single, reports the following items for 2019: $\begin{array}{lr}\text { Salary } & \$ 25,000 \\\text { Interest income } & 8,000 \\\text { Itemized deductions }(\$ 27,000 \text { attributable to dedutible casualty loss) } & (32,000) \end{array}$ What is Wu's net operating loss for 2019?

• A) $0
• B) ($1,000)
• C) ($2,000)
• D) ($7,000)
• E) None of these.

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Definitions:

Perfect Competitor

An ideal market condition where all sellers offer identical products, leading to equal market share and no price control.

Input

Resources used in the process of production, such as labor, materials, and capital.

Substitution Effect

The change in consumption patterns due to a change in the relative prices of goods, leading consumers to substitute one good for another more or less expensive one.

Wage Rate

The standardized amount of money paid to an employee per unit of time or piece of work completed.