Gerry Grows Marijuana Plants from His Own Seeds in the Forest

question 122

Multiple Choice

Gerry grows marijuana plants from his own seeds in the forest behind his house. He sells 20 kilograms of plants to Smokey Joe for $4,000. Joe spends $200 on baggies for packaging, and resells the marijuana on the street for $6,000. Joe's value added is

• A) $2,000.
• B) $5,800.
• C) $6,000.
• D) $1,800.
• E) $10,200.