Leah Berry is entering her senior year as an accounting major and has a number of options for her summer break. Her options for the 3-month break follow: (1) Work full time at a local accounting firm making $3,400 per month. (2) Take a summer class which will cost $800 per month and work half time making $1,800 per month. (3) Take two classes at a cost of $1,200 and not work at all during the summer. Leah’s incremental profit (or loss) if she chooses option 2 over option 1 would be ($1,100) per month. ($2,200) per month. ($2,400) per month. $1,300 per month. ($2,100) per month.

Leah Berry is entering her senior year as an accounting major and has a number of options for her summer break. Her options for the 3-month break follow: (1) Work full time at a local accounting firm making $3,400 per month. (2) Take a summer class which will cost $800 per month and work half time making $1,800 per month. (3) Take two classes at a cost of $1,200 and not work at all during the summer. Leah’s incremental profit (or loss) if she chooses option 2 over option 1 would be ($1,100) per month. ($2,200) per month. ($2,400) per month. $1,300 per month. ($2,100) per month.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter16: Tax Research

Section: Chapter Questions

Problem 64DNC

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Question

Leah Berry is entering her senior year as an accounting major and has a number of options for her summer break. Her options for the 3-month break follow:

(1) Work full time at a local accounting firm making $3,400 per month.

(2) Take a summer class which will cost $800 per month and work half time making $1,800 per month.

(3) Take two classes at a cost of $1,200 and not work at all during the summer.

Leah’s incremental profit (or loss) if she chooses option 2 over option 1 would be

		($1,100) per month.
		($2,200) per month.
		($2,400) per month.
		$1,300 per month.
		($2,100) per month.

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