5-27 What Is Income? In each of the following situations indicate whether taxable income should be recognized. Q purchased an older home for $30,000. Shortly after its purchase, the area in . which it was located was designated a historical neighborhood, causing its value to rise to $50,000. b. R, a long-time employee of XYZ Inc., purchased one of the company's cars worth $7,000 for $3,000 I borrowed $10,000 secured by property that had an adjusted basis of $3,000 and a fair market value of $15,000. d. S, a 60% shareholder in STV Corporation, uses a company car 70% of the time for business and 30% for personal purposes. The rental value of the car is $350 per month . hor 5-27 What Is Income? In each of the following situations indicate whether taxable income should be recognized. Q purchased an older home for $30,000. Shortly after its purchase, the area in . which it was located was designated a historical neighborhood, causing its value to rise to $50,000. b. R, a long-time employee of XYZ Inc., purchased one of the company's cars worth $7,000 for $3,000 I borrowed $10,000 secured by property that had an adjusted basis of $3,000 and a fair market value of $15,000. d. S, a 60% shareholder in STV Corporation, uses a company car 70% of the time for business and 30% for personal purposes. The rental value of the car is $350 per month . hor