Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

3065 Mr. Bacon ran two crowd funding campaigns in 2022 The first campaign was a gofundme campaign where Mr. Bacon sought contributions to help

image text in transcribedimage text in transcribedimage text in transcribed

3065 Mr. Bacon ran two crowd funding campaigns in 2022 The first campaign was a gofundme campaign where Mr. Bacon sought contributions to help him buy hats. Contributors did not receive anything in exchange for their contributions. Mr. Bacon raised $83 in 2022. What amount of the $83 does Mr. Bacon include in his 2022 gross income? The second campaign was administered through kickstarter to fund Mr. Bacon's new business venture-selling meat-scented soaps. For each $10 contributed, contributors received a bar of bacon-scented soap. Mr. Bacon received $1000 in total contributions in 2022. Does Mr. Bacon need to include the contributions in gross income in 2022 Fernando was involved in a car accident in 2022. Fernando suffered physical injuries that kept him out of work for several weeks. In addition, Fernando's car suffered cosmetic damage although Fernando did not repair the damage The other driver was found to have intentionally ran a red light in order to hit Fernando, and Fernando recovered the following amounts in 2022 $10,000 for damage to the car $10,000 compensatory damages for lost wages/loss of income while Fernando recovered from his injuries $16,000 compensatory damages for pain and suffering $1,000,000 punitive damages Fernando purchased the car 10 years ago for $8,000 What amount of the damages does Fernando include in gross income? In addition to the car accident, in 2022. Fernando sued a customer for breach of contract Fernando recovered loss profits of $100,000 What amount of the lost profits does Fernando include in gross income?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles of Financial Accounting

Authors: Belverd E. Needles, Marian Powers

12th edition

978-1133940562, 1133940560, 978-1285608464, 1285608461, 1133939287, 978-0357693605, 978-1285607047, 128560704X, 978-1133939283

More Books

Students also viewed these Accounting questions

Question

Refer to Thinking and Problem-Solving question

Answered: 1 week ago