Virginia,a practicing CPA,receives $11,000 from the sale of rare orchids that she grows.Her expenses of operating this hobby activity follow:
$\begin{array}{lr}
\text { Froperty taxes on the structures } & \$ 4,500 \
\text { Seeds, fertilizer, and bug sprays. } & 8,000 \
\text { Depreciation on the structures } & 5,000
\end{array}$
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

Question

Quizplus · Accepted Answer

Hobby expenses can be deducted up to the amount of income generated from the hobby. Virginia can deduct up to $11,000, which is the income from the sale of orchids.

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