Which of the Following Gifts or Prizes Would Be Considered

question 40

Multiple Choice

Which of the following gifts or prizes would be considered taxable income to the person receiving the gift?

• A)$5,000 given to the taxpayer by his friend
• B)A mobile home given to the taxpayer by his mother
• C)A ski boat won by the taxpayer on the Price is Right game show
• D)A Mustang GT given to the taxpayer by his brother
• E)None of the above would be considered taxable

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Definitions:

Job Order Costing

An accounting method used to track the costs associated with producing a specific batch of products or performing a specific service.

Costing System

A method used by businesses to track, record, and analyze costs associated with their products or services to ensure profitability.

Process Costing Method

An accounting methodology used to allocate production costs to products based on the process they undergo, typically in industries where goods are produced in a continuous fashion.

Equivalent Units

A concept used in cost accounting to express the amount of materials, labor, or overhead costs in terms of fully completed units of production.