Ally Served as Chairperson of the Local School Board

question 125

Multiple Choice

Ally served as chairperson of the local school board. Upon completion of her term in office, the employees in the school district offices take up a collection and purchase her a silver sterling tray in recognition of her outstanding service to the organization. The value of the tray is $200. What are the tax effects of the award?
I.The value of the tray is included in gross income because of services rendered.
II.The tray is a gift because it is from a detached and disinterested generosity.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both are correct.
• D)Neither is correct.

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Definitions:

Horizontal Merger

The combination of two or more firms competing in the same market with the same good or service.

Horizontal Merger

A merger between companies that operate in the same industry, often as direct competitors.

Supplier-Customer Relationships

This term refers to the interactions and dealings between a business that provides products or services and its buyers.

Conglomerate Merger

A merger between firms that are involved in totally unrelated business activities.