Virginia,a Practicing CPA,receives $11,000 from the Sale of Rare Orchids

question 32

Multiple Choice

Virginia,a practicing CPA,receives $11,000 from the sale of rare orchids that she grows.Her expenses of operating this hobby activity follow: ​
How much of the expenses that Virginia incurs can be deducted as hobby expenses?

• A)$- 0 -
• B)$4,500
• C)$11,000
• D)$12,500
• E)$17,500

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Definitions:

Raise Price

The act of increasing the cost at which a good or service is sold, which can affect demand, revenue, and profit margins.

Lose Sales

The phenomenon of experiencing a reduction in the number of units sold or in total revenue.

Competitive Price-searcher

A market condition where businesses actively seek to determine the optimal pricing of their goods or services relative to their competitors to gain market share.

Entry Barriers

Obstacles that make it difficult for new competitors to enter a market.