Sally is a cash-basis taxpayer and a member of the Valley Barter club. This year Sally provided 100 hours of sewing services to the barter club in exchange for two football playoff tickets. Which of the following is a true statement?
A. Sally need not recognize any gross income unless she sells the football tickets.
B. Sally is taxed on the value of the football tickets even if she cannot attend the game.
C. Sally's exchange does not result in taxable income.
D. Sally is taxed on the value of her sewing services only if she is a professional seamstress.
E. None of the choices are correct.
Answer: B
You might also like to view...
The Hawthorne researchers discovered that for workers ______ was more important than previously known in understanding performance.
A. an incentive system B. the human element C. standards of production D. dimmed lights
An entrusted merchant has the power to transfer all rights in the goods to a buyer in the ordinary course of business
Indicate whether the statement is true or false
Paula is a sales agent for The Rock Insurance Company. Paula accepts a check from a customer made payable to her in payment for the premium on an insurance policy. Prior to depositing the check in The Rock's bank account, Paula indorses the check as follows: "The Rock Insurance Company, by Paula Beck, agent." Assuming that Paula has authority to indorse company checks, if the check is dishonored,
then between Paula, The Rock, and the bank: a. Paula only will be liable. b. Paula and The Rock will be liable. c. The Rock only will be liable. d. The bank will be stuck with the dishonored check.
China did not become a member of the World Trade Organization until 2002
Indicate whether the statement is true or false