+1-415-670-9189
info@expertsmind.com
Carey is a self-employed landscaper he contracted to
Course:- Accounting Basics
Reference No.:- EM13601492




Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Accounting Basics

Carey is a self-employed landscaper. He contracted to maintain Ted's lawn for $150 per month. Ted was very pleased with Carey's work and at the end of the year paid Carey an additional $500.

a. Does the fact that Ted had no legal obligation to make the payment mean that Carey can exclude the $500 from gross income as a gift?

b. True or False: The intent of the donor does not matter as long as there is no legal or moral obligation to pay the $500. The donor's intent may disqualify the $500 from being considered a gift.




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
The data shown in the table below come from the annual reports of three local companies: Trimeris, Martin Marietta Materials and IBM. Units are shown. For each company: Comp
The accountant is bound to inform officials only if she stands to personally gain (make money) from knowledge of the illegal act. The accountant must exercise personal judgm
The quality of the user experience is very important to the success of an application. In the early days of computing, users often experienced long delays since computing po
Southwest Airlines sells you an advance-purchase airline ticket in September for your flight home at Christmas - Ultimate Electronics sells you a home theatre on a "no money d
At the time the machine was purchased, the market rate of interest was 10%. The amount that should be debited to the asset account, Machinery, on the date of purchase is (ro
A. Are any of the stocks clearly inferior choices? (Explain. You can eliminate any inferior choice(s) from the rest of the analysis). B. What is the alternative chosen using
Many hospitals use funds for internal record keeping. Distinguish between the kinds of resources accounted for in the General Fund and the kinds accounted for in Restricted
Rao Construction recently reported $20.50 million of sales, $12.60 million of operating costs other than depreciation, and $3.00 million of depreciation. What was Rao's oper