gross income may be realized when a taxpayer receives economic benefit even if no cash is received. 1. true…

gross income may be realized when a taxpayer receives economic benefit even if no cash is received. 1. true 2. false question 4 1 pts ellen, a cpa, prepares a tax return for frank, a plumber, in exchange for installing a new sink. since no cash changed hands, neither taxpayer is required to report any income. 1. true 2. false

gross income may be realized when a taxpayer receives economic benefit even if no cash is received. 1. true 2. false question 4 1 pts ellen, a cpa, prepares a tax return for frank, a plumber, in exchange for installing a new sink. since no cash changed hands, neither taxpayer is required to report any income. 1. true 2. false

Answer

Brief Explanations:

Gross income includes non - cash economic benefits. In the first case, economic benefit realization means gross income realization even without cash. In the second case, bartering services (tax return preparation for sink installation) is a form of economic benefit and both taxpayers should report income.

Answer:

    1. True
    1. False