Stella, Age 38, Is Single with No Dependents Based on This Information, What Is Stella's Net Operating Loss

question 55

Essay

Stella, age 38, is single with no dependents. The following information was obtained from her personal records for the 2019 year. $\begin{array}{lr}\text { Salary } & \$ 30,000 \\\text { Interest income } & 7,000 \\\text { Alimony received } & 12,000 \\\text { Individual retirement account contribution } & 2,000\\\text { Home mortgage interest expense } & 4,000 \\\text { Property taxes } & 2,000 \\\text { Personal casual ty loss in a Federal disaster area } & 38,000 \\\quad \text { (after the } \$ 100 \text { floor) } &\end{array}$ Based on this information, what is Stella's net operating loss for 2019?
a. $0
b. ($7,200)
c. ($8,300)
d. ($13,000)
e. None of these.

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Definitions:

Social Loafing Effect

identifies the tendency for individuals to exert less effort when working in groups than when working alone, due to perceived diffusion of responsibility.

Individual Work

refers to tasks or projects completed by a single person, focusing on personal responsibility and autonomy in achieving objectives.

Team Creativity

The collective ability of a team to generate novel and useful ideas or solutions.

Kohler Effect

The phenomenon where less capable members of a group perform better when working in a team than they would on their own, due to the motivation of not wanting to let the group down.