Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Your client, John Butler, is an avid Houston Astros fan. Las March at the Astros home opener, as a result of a random drawing of

Your client, John Butler, is an avid Houston Astros fan. Las March at the Astros home opener, as a result of a random drawing of those in attendance at the game, John won 300 Shipley Do-Nut coupons. Each coupon entitles him to a cup of coffee and a free doughnut or a dozen doughnut holes.

John used some of the coupons (approximately 20), but found that eating so many doughnuts directly conflicted with his goal of losing weight. The unused coupons expired on January 1, 2015. Thus John was surprised when he received a Form 1099 in February 2015 that valued his prize at $900. John would like to know whether the value of the doughnut coupons should be included in income and asks you to research his question. If you conclude that their value should be included in income, John also would like to know if he can reduce his gross income by including in income only the value of the coupons that he used. He has the unused coupons as documentation that neither he nor anyone else used them.

I should write a memorandum that included facts, issue, conclusion, law and analysis! any help guys:)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Principles

Authors: Paul D Kimmel, Donald E Kieso Jerry J Weygandt

IFRS global edition

1-119-41959-4, 470534796, 9780470534793, 9781119419594 , 978-1119419617

More Books

Students also viewed these Accounting questions