Which of the Following Is an Example of Barter

question 192

Multiple Choice

Which of the following is an example of barter?

• A)A parent gives a teenager a $10 bill in exchange for her babysitting services.
• B)A homeowner gives an exterminator a check for $50 in exchange for extermination services.
• C)A barber gives a plumber a haircut in exchange for the plumber fixing the barber's leaky faucet.
• D)A doctor performs surgery on a patient whose insurance pays 100% of the bill.

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Definitions:

Involuntary Conversion

Involuntary Conversion is the process where property or an asset is destroyed, stolen, confiscated, or condemned, and the owner receives compensation, such as insurance proceeds or condemnation awards.

Gain

An increase in wealth, income, or value, often realized from investments or sales of assets.

Election

A decision made by taxpayers regarding the treatment of certain tax items, such as choosing a filing status or opting for a standard or itemized deduction.

Indirectly

In a manner not directly caused by or resulting from something.