Question
Margaret has always enjoyed taking photographs. In 2020, a local gallery owner saw some of her photos and set up a showing for Margaret. At
Margaret has always enjoyed taking photographs. In 2020, a local gallery owner saw some of her photos and set up a showing for Margaret. At the showing, patrons purchased photographs totaling $10,000.
Which of the following is true?
A)Margaret may postpone a decision for up to five years to decide if she needs to report the income from the showing.
B)The patrons paid the gallery owner. Therefore, Margaret does not need to report any of the income.
C)Margaret did not ask for the showing, so she doesn't need to report any of the income.
D)Margaret should report all the income received. No expenses are allowed.
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