Which of the following is an example of earning income from capital gains? a. hourly employee earning \( \$ 17 \) per hour b. salaried employee earning \( \$ 56,000 \) per year c. selling stocks and making a profit of \( \$ 3,000 \) d. buying a car for a total of \( \$ 5,000 \)

1. Define capital gains: Capital gains occur when an asset is sold for more than its purchase price, resulting in a profit. 2. Evaluate each option: - **Option a:** An hourly employee earning \( \$17 \) per hour receives wages for labor, not capital gains. - **Option b:** A salaried employee earning \( \$56,000 \) per year also receives wages, not capital gains. - **Option c:** Selling stocks and making a profit of \( \$3,000 \) is an example of an asset (stocks) being sold for more than its purchase price, which is the definition of capital gains. - **Option d:** Buying a car for \( \$5,000 \) is a purchase, with no sale or profit involved and therefore does not produce capital gains. 3. Conclusion: The correct answer is **c**.