In 2007 Tiger Woods agreed to a cover shot, photo spread, and interview with

Men's Fitness

magazine in exchange for a sister publication's agreement to forbear publishing an article

alleging an extramarital affair involving woods. The sister publication, the

National Enquirer

,

had informed Wood's representative that it had photographic evidence of the golfer having an

affair.

This agreement was heavily negotiated over several weeks and ultimately formalized into a

written document. The article was published in the August 2007 issue of

Men's Fitness

.

Does Woods have income that he must recognize from this transaction? How would the

amount of income be determined?

Will Woods receive a deduction for this transaction? How would the amount of the deduction

be determined?