Question
Elisha is a photographer and charges a set fee to photograph weddings This is an example of __ income a. capital gains b. earned c. hourly d. passive Please select the best answer from the choices provided
Answer
4.6
(151 Votes)
Yolanda
Professional · Tutor for 6 years
Answer
b. earned
Explanation
The problem pertains to identifying the type of income Elisha, a photographer, earns from a set fee for photographing weddings. This scenario describes income directly received for services rendered, which fits the definition of "earned income." Earned income is the money received by individuals for active participation in a trade or business, including wages, salaries, tips, and professional fees. In contrast:- Capital gains refer to profit from the sale of financial assets and investments.- Hourly income is based on hours worked.- Passive income is derived from activities in which the individual is not actively involved, like rental property or dividends.