• Dave is a plumber who uses the cash method of accounting. This year Dave requested that his clients make their checks payable to his son, Steve. This year Steve received checks in the amount of $62,000 for Dave's plumbing services. Which of the following is a true statement?
• A.Steve is taxed on $62,000 of plumbing income this year.
• B.Dave may deduct the $62,000 received by Steve.
• C.Steve is taxed on $62,000 of income from gifts received this year.
• D.Dave is taxed on $62,000 of plumbing income this year.
• E.None of the choices are correct.