a. Mike paid Hank $320 in cash in December of this year and promised to pay the remaining $540 with interest in three months.

Gross income=

b. Mike gave Hank tickets in December to the big game in January. The tickets have a face value of $50 but Hank could sell them for $760. Hank went to the game with his son.

Gross income=

c. Mike bought Hank a new set of snow tires. The tires typically sell for $860, but Mike bought them on sale for $774.

Gross income=

Required information [The following information applies to the questions displayed below.) Although Hank is retired, he is an excellent handyman and often works part-time on small projects for neighbors and friends. Last week his neighbor, Mike, offered to pay Hank $860 for minor repairs to his house. Hank completed the repairs in December of this year. Hank uses the cash method of accounting and is a calendar-year taxpayer. Compute Hank's gross income for this year from each of the following alternative transactions