FEDERAL TAX

Chafe is a cash basis laxpayer who is employed in the plumbing industry. This year his employer informed him that because of his large sales volume, as a bonus, he is entitled to

a free trip lo Hawai. Charle asked his employer lo give the trip to his parents since he is afraid of flying Identity the principle that will determine whether Charlie or his parents are

taxed on the value of the trip lo Hawaii:

- Return of capital principle

- Constructive recaip!

- Assignment of income

- Wherewithal to pay

- All of these

22 terwys na ewenye wimbo wge sales vou, as a borus, be sented to for the rest of the people at dere with Chase of his parents are D OG DA w 2.94 points