Dave is a plumber who uses the cash method of accounting This year Dave

Dave is a plumber who uses the cash method of

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57. Dave is a plumber who uses the cash method of accounting. This year Dave requested that his clients make their checks payable to his son, Steve. This year Steve received checks in the amount of $62,000 for Dave's plumbing services. Which of the following is a true statement? A. Dave is taxed on $62,000 of plumbing income this year.B. Steve is taxed on $62,000 of plumbing income this year.C. Steve is taxed on $62,000 of income from gifts received this year.D. Dave may deduct the $62,000 received by Steve.E. All of the above are true5-9
Chapter 05 - Gross Income and Exclusions58. Jack and Jill are married. This year Jack earned $72,000 and Jill earned $80,000 and they received $4,000 of interest income from a joint savings account. How much gross income would Jack report if he files married-separate from Jill? 59. Identify which of the items below help determine which taxpayer must recognize earned income: 60. Kevin provided services to several clients this year who paid with different types of property. Which of the following payments is notincluded in Kevin's gross income? 61. Emily is a cash basis taxpayer, and she was an especially productive salesperson last year. In December of last year her supervisor told Emily she had earned a $5,000 bonus. However, Emily received the bonus check after year end. Identify the principle that will determine when Emily is taxed on the bonus: A. Assignment of incomeB. Constructive receiptC. Return of capital principleD. Wherewithal to payE. All of the above5-10
Chapter 05 - Gross Income and Exclusions62. Ophra is a cash basis taxpayer who is employed in the publishing industry. This year her employer informed her that because of her outstanding performance she is entitled to a free world cruise. Ophra asked her employer to issue the cruise tickets to her parents, and he complied with this request. Identify the principle that will determine whether Ophra or her parents are taxed on the value of the cruise tickets:

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