Question
17 Mikah invented and patented a new product which sells in local department stores. This is an example of _ income. a. capital gains b. earned c. hourly d. passive
Ask by Hodges Carlson. in the United States
Feb 24,2025
Upstudy AI Solution
Tutor-Verified Answer
Answer
The answer is **b. earned**.
Solution
To determine the correct answer, let's analyze the options in the context of the scenario provided:
1. **Capital gains**: This refers to the profit from the sale of an asset or investment. Since Mikah is selling a product, this does not apply.
2. **Earned income**: This is income derived from work or services performed, including wages, salaries, and profits from a business. Since Mikah invented and is selling a product, this would be considered earned income.
3. **Hourly income**: This refers specifically to income earned based on the number of hours worked. While Mikah may earn income from selling the product, the description does not specify that it is based on hourly work.
4. **Passive income**: This is income earned with little to no effort on the part of the recipient, such as rental income or dividends. Since Mikah actively invented and sells the product, this does not apply.
Given this analysis, the correct answer is:
**b. earned**
Answered by UpStudy AI and reviewed by a Professional Tutor
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Simplify this solution The Deep Dive
Mikah's income from selling a patented product falls under earned income, which is the money you make through working, whether it's through a job or a self-established business. It's an active form of income where effort and creativity create tangible financial rewards. Additionally, by securing a patent, Mikah is also protecting the uniqueness of his invention, ensuring that he can profit from his hard work without competitors copying his idea. This strategic move not only boosts his earnings but also sets him up as an innovator in the market!
