Gary Is a Successful Architect Who Also Sings at Weddings

question 53

Multiple Choice

Gary is a successful architect who also sings at weddings.This year,he received $5,400 of fees for his singing and spent $6,250 on voice lessons,sheet music,and travel to the weddings.Which of the following statements is true?

• A)Because the singing activity resulted in a loss,Gary can't treat it as a business.
• B)If facts and circumstances support Gary's claim that his singing activity is a business,he can deduct an $850 above-the-line loss.
• C)Because Gary's primary source of income is his architecture practice,he can't treat the singing activity as a business.
• D)None of the above is true.

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Definitions:

Budget Shortfalls

A financial situation where projected spending exceeds the revenues or funds available, often leading to the necessity for cuts or borrowing.

Hyperinflation

An extremely high and typically out-of-control inflation rate, where the prices of goods and services rise rapidly, eroding currency value.

Printing More Money

The action taken by a country's central bank to increase the money supply, often leading to inflation if not managed properly.

Gini Coefficient

A measure used to express the distribution of income or wealth within a population, indicating inequality levels.