Caroline is an artist.She purchases canvases,paints,brushes,and accessories for $75.She sells one of her original paintings to an art gallery for $1,500,even though an art lover would pay $4,500 for that painting.How much market value does Caroline add?

Question

Quizplus · Accepted Answer

The cost of materials and accessories ($75) is not adding any market value to the painting. Caroline's artwork is adding $4,500 to the painting's market value, but she only receives $1,500 from the art gallery. Therefore, the market value she adds is the difference between the two, which is $3,000. However, she already spent $75 on materials, so the net value she adds is $2,925 ($3,000 - $75). So, the best choice is B.

Caroline Is an Artist