An Auto That Is Received as a Prize Should Be

question 49

True/False

An auto that is received as a prize should be included in the taxpayer's income at its list price rather than its fair market value.

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Definitions:

Other Comprehensive Income

Earnings that are not part of net income, consisting of items such as unrealized gains and losses on certain investments.

Retained Earnings

The portion of net income that is retained by the corporation instead of being paid out as dividends to shareholders.

Earnings Management

The practice of using accounting techniques to produce financial reports that may paint an overly positive picture of a company's business activities and financial position.

Investment Account

A financial account held at a financial institution that contains securities, cash, and other assets managed for the purpose of achieving an investment goal.