T wins a door prize as the one-thousandth customer walking through the door of his favorite coffee shop. He is given a choice of $1,000 in cash or a cappuccino machine (which cost the shop $1,000, but has a retail value of $1,500). T chooses the machine. a. T has realized at least $1,000 of income. b. T will recognize income only if and when he sells the machine. c. Both (a) and (b) are correct. d. None of the above.

T wins a door prize as the one-thousandth customer walking through the door of his favorite coffee shop. He is given a choice of $1,000 in cash or a cappuccino machine (which cost the shop $1,000, but has a retail value of $1,500). T chooses the machine. a. T has realized at least $1,000 of income. b. T will recognize income only if and when he sells the machine. c. Both (a) and (b) are correct. d. None of the above.

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter4: Gross Income: Concepts And Inclusions

Section: Chapter Questions

Problem 53P: For each of the following, determine the amount that should be included in gross income: a. Peyton...

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