Your client Jim Clark, president of Heavy Duty Fences, Inc. did business with Carol Smith, president of Pools for All, Inc. Occasionally, during phone conversations, at Smith's request, Clark would provide the name of potential customers to Smith. This year Smith gave Clark a BMW to express her gratitude for all of his help. Clark does not believe that Smith would have sent the BMW if he had not provided the names of the potential clients. What does this mean for Jim Clark's taxable income?

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