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