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a. When a babysitter provides $100 of services in exchange for $100 of groceries, the babysitter has realized $100 of income. b. When a taxpayer
a. When a babysitter provides $100 of services in exchange for $100 of groceries, the babysitter has realized $100 of income.
b. When a taxpayer sells an asset, the entire proceeds from the sale must be included in gross income regardless of the cost of the asset. True or False.
c. Jim sold his car for $2,400 in cash this year. He purchased the car for $1,400. How much gain should he realize on the sale?
d. Interest income is taxed in the year in which it is received by the taxpayer or credited to the bank account.
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