Dave Is a Plumber Who Uses the Cash Method of Accounting

question 129

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) All of these are true

---

Definitions:

Procreation

The biological process by which offspring are produced, encompassing the activities of conception and reproduction.

Evolutionary Survival

Refers to the process by which organisms adapt and evolve traits over generations that enhance their ability to survive and reproduce in their environment.

Psychological Safety

A state in which individuals feel safe to take interpersonal risks, express themselves, and be vulnerable without fear of negative consequences to self-image, status, or career.

Family Assessment

The evaluation of a family's structure, dynamics, and functioning to identify strengths, challenges, and areas requiring support or intervention.