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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

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

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

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YolandaProfessional · Tutor for 6 years

Answer

b. earned

Explain

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." <br /><br />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:<br />- Capital gains refer to profit from the sale of financial assets and investments.<br />- Hourly income is based on hours worked.<br />- Passive income is derived from activities in which the individual is not actively involved, like rental property or dividends.
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