Carey is a self-employed landscaper he contracted to

Assignment Help Accounting Basics

Reference no: EM13601492

Carey is a self-employed landscaper. He contracted to maintain Ted's lawn for $150 per month. Ted was very pleased with Carey's work and at the end of the year paid Carey an additional $500.

a. Does the fact that Ted had no legal obligation to make the payment mean that Carey can exclude the $500 from gross income as a gift?

b. True or False: The intent of the donor does not matter as long as there is no legal or moral obligation to pay the $500. The donor's intent may disqualify the $500 from being considered a gift.

Reference no: EM13601492

Questions Cloud

Assume model 4399 requires the purchase of additional : corrigan enterprises is studying the acquisition of two electrical component insertion systems for producing its sole

The company has 20000 units of product on hand at april 1 a : friden company has budgeted sales and production over the next quarter as followsapril may junesales in units 100000

Diana lost her job when her employer moved the plant to : indicate whether the amounts received are included in or excluded from the gross income of the individuals in the

Justins plant store a retailer started operations on : justins plant store a retailer started operations on january 1. on that date the only assets were 16000 in cash and

Carey is a self-employed landscaper he contracted to : carey is a self-employed landscaper. he contracted to maintain teds lawn for 150 per month. ted was very pleased with

All the departments in the organization that will be : when an authorized purchase requisition comes into the system it is checked to see that it has been authorized.

Freeman company uses a predetermined overhead rate based on : freeman company uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs.

Supreme celery corporation manufactures four celery based : supreme celery corporation manufactures four celery based products. floods and fire on the west coast are going to

What will be the companys net income for the current year : disk city inc. is a retailer for digital video disks. the projected net income for the current year is 2300000 based on

User Account

All Pages