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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.

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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 $500 for minor repairs to his house. Hank completed the repairs in December of this year. Hank uses the cash method of accoumting and is a calendar-year taxpayer. Compute Hank's gross income for this year from each of the following altemative transactions: Required: a. Mike paid Hank $200 in cash in December of this year and promised to pay the remaining $300 with interest in three monthe. 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 $400 Hank went to the game with his son. c. Mike bought Hank a new set of snow tires. The tires typically sell for \$500, but Mike bought them on sale for \$450. Make paid Hank s200 in cash in December of this year and promised to pay the rensaining \$a00 with interest in three months. 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 $500 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 altemative transactions: Requlred: a. Mike paid Hank $200 in cash in December of this year and promised to pay the remaining $300 with interest in three months. 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 $400. Hank went to the game with his son. c. Mike bought Hank a new set of snow tires. The tires typically sell for $500, but Mike bought them on sale for $450. 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 $400. Hank went to the game with his son. Athough Hank is retired, he is an excellent handyman and often works part time on small projects for neighbors and friends. week his neighbor. Mike, offered to pay Hank $500 for minor repairs to his house. Hank completed the repairs in December year. Hank uses the cash method of accounting and is a calendar-year taxpayer. Compute Hank's gross income for this year of the following aitemative transactions: Required: a. Mike paid Hank $200 in cash in December of this year and promised to pay the remaining $300 with interest in three mon 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 $400. Hank went to the game with his son. c. Mike bought Hank a new set of snow tires. The tires typically sell for $500, but Mike bought them on sale for $450. Mike bought Hank a new set of snow tires. The tires typically sell for $500, but Mike bought them on sale for $450

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