Andrew's hobby is painting.During the current year,Andrew sold three of his paintings for a total of $2,200.His related expenses include $800 utilities,$1,200 supplies,and $400 in depreciation.Of these expenses incurred,how much can Andrew deduct in the current year?
A)$0
B)$2,000
C)$2,200
D)$2,400

Question

Quizplus · Accepted Answer

Andrew can deduct his related expenses from his income, so his total deductible expenses are $800 + $1,200 + $400 = $2,400. Since the total amount of his sales is only $2,200, he cannot deduct more than that amount. Therefore, the maximum amount he can deduct is $2,200, which is option B.

Andrew's Hobby Is Painting