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 $680 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:

Required:

1. Mike paid Hank $260 in cash in December of this year and promised to pay the remaining $420 with interest in three months.
2. 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 $580. Hank went to the game with his son.
3. Mike bought Hank a new set of snow tires. The tires typically sell for $680, but Mike bought them on sale for $612.

1. 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 $680 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:

Required:

1. Mike paid Hank $260 in cash in December of this year and promised to pay the remaining $420 with interest in three months.
2. 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 $580. Hank went to the game with his son.
3. Mike bought Hank a new set of snow tires. The tires typically sell for $680, but Mike bought them on sale for $612.

2. Jim recently joined the Austin Barter Club, an organization that facilitates the exchange of services between its members. This year Jim provided lawn-mowing services to other club members. Jim received the following from the barter club. Determine the amount, if any, Jim should include in his gross income in each of the following situations:

Required:

1. Jim received $371 of car repair services from another member of the club.
2. Jim received a $610 credit that gave him the option of receiving a season pass at a local ski resort from another member of the club. However, he forgot to request the pass by the end of the ski season and his credit expired.
3. Jim received a $570 credit that can only be applied for goods or services from club members next year.

3. Louis files as a single taxpayer. In April of this year he received a $1,140 refund of state income taxes that he paid last year.

How much of the refund, if any, must Louis include in gross income under the following independent scenarios? Assume the standard deduction last year was $12,550.

Note: Leave no answer blank. Enter zero if applicable.

Required:

1. Last year Louis claimed itemized deductions of $13,040. Louis's itemized deductions included state income taxes paid of $1,990 and no other state or local taxes.
2. Last year Louis had itemized deductions of $11,040 and he chose to claim the standard deduction. Louis's itemized deductions included state income taxes paid of $1,990 and no other state or local taxes.
3. Last year Louis claimed itemized deductions of $14,230. Louis's itemized deductions included state income taxes paid of $2,990 and no other state or local taxes.