Lindsey Forbes,a detective who is single,operates a small pottery activity on a part-time basis.This year she reported the following income and expenses from this activity:
In addition,she had salary of $70,000 and itemized deductions,not including expenses listed above,of $6,800.
a. What is the amount of Lindsey's taxable income assuming the activity is classified as a hobby?
b. What is the amount of Lindsey's taxable income assuming the activity is classified as a trade or business?
Definitions:
Traffic Problems
Issues related to the congestion and management of vehicles on roadways, affecting travel time and safety.
Decibels
A unit of measurement used to express the intensity of sound, symbolized as dB.
Human Ear
A part of the human body that is responsible for detecting sound and helping in the balance and positioning of the body.
Artificial Light
Light produced by electrical means, as opposed to natural light sourced from the sun.
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