eBook Self-Study Problem 2.11 Don is an attorney who supplied a list of potential clients to a new attorney, Lori. This list aided in the success of Lori's practice. Lori was very pleased and decided to do something for Don. In the current year, Lori gives Don a new car worth $40,000. Lori was not obligated to give this gift to Don, and she did not expect Don to perform future services for the gift. How much income, if any, should Don report from this transaction and why? Don should report 40,000 as income. Because the gift was made in a business setting, the courts are likely to consider the car a gift even if there was no obligation to make the payment. a gift a payment for goods or services Check My Work Previous Next > Email Inau