Please revise message to remedy writing faults Hi, Sierra,

1As your CPA, I`m happy to respond to your request for clarification of the tax status of profits from eBay, 2or one of the other online sellers such as Etsy, Amazon, and Bonanza.
3As you are probably already aware, you can use eBay or one of the other sellers to clean out your closets or to run a small business. 4Tax liabilities should definitely be clarified, 5although no clear line separates fun from profit or a hobby from a business. 6One thing is certain: the IRS taxes all income.

7A number of factors will help you determine whether your hobby is a business. 8To use eBay safely, the following questions should be considered:

9Do you run the operation in a businesslike manner? 10That is, do you keep records, track of your profit and loss, and separate checking account?
11Do you devote considerable time and effort to your selling? 12If you spend eight or more hours a day trading on eBay, 13the IRS would tend to think you are in a business.
14Some people depend on the income from their eBay activities for their livelihood. 15Do you?
16Are you selling items for more than they cost you? 17If you spend $5 for a garage sale vase and sell it for $50, 18the IRS would probably consider this a business transaction.
19The profits are taxable, 20even for eBay sellers who are just playing around. 21You can call me at 213-456-8901 to discuss this further.
Justin Corona

Blue computers, a major pc manufacturer in the united states, currently has plants in kentucky and pennsylvania. the kentucky plant has a capacity of 1 million units a year and the pennsylvania plant has a capacity of 1.5 million units a year. the firm divides the united states into five markets: northeast, southeast, midwest, south, and west. each pc sells for $1,000. the firm anticipates a 50 perc~nt growth in demand (in each region) this year (after which demand will stabilize) and wants to build a plant with a capacity of 1.5 million units per year to accommodate the growth. potential sites being considered are in north carolina and california. currently the firm pays federal, state, and local taxes on the income from each plant. federal taxes are 20 percent of income, and all state and local taxes are 7 percent of income in each state. north carolina has offered to reduce taxes for the next 10 years from 7 percent to 2 percent. blue computers would like to take the tax break into consideration when planning its network. consider income over the next 10 years in your analysis. assume that all costs remain unchanged over the 10 years. use a discount factor of 0.1 for your analysis. annual fixed costs, production and shipping costs per unit, and current regional demand (before the 50 percent growth) are shown in table 5-13. (a) if blue computers sets an objective of minimizing total fixed and variable costs, where should they build the new plant? how should the network be structured? (b) if blue computers sets an objective of maximizing after-tax profits, where should they build the new plant? how should the network be structured? variable production and shipping cost ($/unit) annual fixed cost northeast southeast midwest south west (million$) kentucky 185 180 175 175 200 150 pennsylvania 170 190 180 200 220 200 n. carolina 180 180 185 185 215 150 california 220 220 195 195 175 150 demand ('000 units/month) 700 400 400 300 600