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Which of the Following Statements Regarding Farming Income Is Correct

Question 63

Multiple Choice

Which of the following statements regarding farming income is correct?


A) A full time school teacher has income from his part-time farming activities. His farming income must be calculated on a cash basis.
B) A full time school teacher recognized a $9,500 loss this year from his part-time farming activities. The maximum deduction allowed this year from the farm loss is $6,000.
C) A full time school teacher recognized a $9,500 loss this year from his part-time farming activities. The maximum deduction allowed this year from the farm loss is $2,500.
D) A full time school teacher has income from his part-time farming activities. His farming income must be calculated on an accrual basis.

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