Dave Is a Plumber Who Uses the Cash Method of Accounting

question 29

Multiple Choice

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)None of the choices are correct.

Understand the psychological and social implications of puberty coinciding with adolescence.

Understand different types of jurisdiction in the legal system.

Recognize the roles and limitations of courts within the U.S. legal structure.

Identify the fundamental procedures and terms in litigation and appeals.

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Definitions:

European Union

A political and economic union of 27 European countries that are located primarily in Europe, aiming to ensure the free movement of people, goods, services, and capital among its members.

Agricultural Imports

Goods brought into a nation that are produced by the agriculture sector of another country.

Government Price Supports

Economic policies or subsidies implemented by the government to maintain the market price of a commodity or product above its equilibrium level.

Surplus Production

The condition where the quantity of goods produced exceeds the quantity of goods consumed.