Fred has been unemployed for six months. He has been using the Jobs R Us Pty. Ltd. employment agency for the past four months to try to find employment. In March of this year, a new case manager, Bert, was given the task of finding a job for Fred. Within a week, Bert, had found Fred a full time job. Fred bought a $500 gold watch and gave it to Bert to say thank you. Advise Bert as to whether the watch is assessable income. Refer to case law and legislation in your answer.

As per the US Federal Tax law, all incomes earned by an individual from different sources are taxed…

Answered: Fred has been unemployed for six…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Fred has been unemployed for six months. He has been using the Jobs R Us Pty. Ltd. employment agency for the past four months to try to find employment. In March of this year, a new case manager, Bert, was given the task of finding a job for Fred. Within a week, Bert, had found Fred a full time job. Fred bought a $500 gold watch and gave it to Bert to say thank you.

Advise Bert as to whether the watch is assessable income. Refer to case law and legislation in your answer.

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