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:

Net Profit

The amount of income that remains after subtracting all expenses, taxes, and costs from total revenue.

Monetary Items

Assets and liabilities that are to be received or paid in a fixed or determinable amount of money.

Payables

Amounts that a company owes to its creditors or suppliers for goods or services received.

Borrowings

Funds that a company or individual takes on loan from another party, to be repaid over time with interest.