1-11 True False

Lisa performed bookkeeping services for Donald charging him $650. Donald agreed that he would pay Lisa's credit card bill for the same amount. Lisa has received an economic benefit and must report $650 in income on her tax return. True False Jeff owns 200 shares of Coca Cola common stock that have increased in value by $14 each. He must report the increase in income because a transaction has occurred. True False Constructive receipt means the income is available to or in the control of the taxpayer regardless of whether the taxpayer chooses to utilize the income. True False If Lucas, an accountant, agrees to provide tax services to a neighbor in exchange for the neighbor agreeing to fix his pool, Lucas but not his neighbor will have to report income on this transaction at fair market value. True False All federal and state unemployment compensation benefits are not subject to income tax. True False The taxability of social security benefits depends on the "provisional income" and filing status of the taxpayer. True False Jury duty pay is taxable income, but it can be deducted from gross income if the amount must be given to the employer. True False The initial original issue discount (OID) on a bond is equal to the difference between the acquisition price and the maturity value. True False Receipt of property or services does not trigger income recognition for tax purposes. True False Payments received by a taxpayer for unemployment compensation are not taxable. True False A taxpayer must report in income imputed interest on a loan made below market interest rate. True False