Aaron Found a Prototype of a New Pair of Glasses

question 9

Essay

Aaron found a prototype of a new pair of glasses with Internet service and other computing capabilities while in a bar one evening. He offered the prototype to the owner of a magazine and blog that reviews new digital devices. The owner paid Aaron $10,000 in return for the prototype. What tax issues should Aaron consider?

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Definitions:

Lipids

A group of naturally occurring molecules that include fats, waxes, and certain vitamins, essential for energy storage and cell structure.

Oral Contraceptive Pill

A medication taken by mouth by women to prevent pregnancy, containing hormones that inhibit ovulation and other changes conducive to fertilization.

Estrogen

A group of steroid hormones that promote the development and maintenance of female characteristics in the human body.

Progesterone

A steroid hormone produced in the ovaries, placenta, and adrenal glands, playing a key role in the menstrual cycle, pregnancy, and embryogenesis.