Reference no: EM132819670
Problem 1: Which of the following is not includable in gross income?
a) Gambling Winnings
b) $ 10,000 in cash found in a used piano you purchased for $ 435
c) the value of vegetables grown in your garden
d) Vase worth $ 350 given to you by your boss for outstanding performance
Problem 2: Which of the following items is includable in gross income?
a) Value of a meal to a restaurant worker during working hours
b) $ 100 Amazon.com gift card given to employee for 25 years of service
c) Free parking on the employer's business premises valued at $ 200 per month
d) Discount to a department store clerk of 10% on furniture sold by the store. The average gross profit percentage on items sold by the store is 30%
Problem 3: A cash basis taxpayer receives $ 1,200 for a two year snow removal contract on July 1, 2021. He should report $ 500 of gross income for 2021.
A) True
B) False