Thomas won a new motorcycle from his employer for being the top salesperson in the entire firm. The motorcycle cost the employer only $28,000 because he purchased multiple bikes from the dealer; it had a retail price of $32,000. In addition, Thomas's employer gave him $4,000 with which to pay the taxes on the prize. How much must Thomas include in his gross income?
Thomas won a new motorcycle from his employer for being the top salesperson in the entire firm. The motorcycle cost the employer only $28,000 because he purchased multiple bikes from the dealer; it had a retail price of $32,000. In addition, Thomas's employer gave him $4,000 with which to pay the taxes on the prize. How much must Thomas include in his gross income?
Chapter5: Gross Income: Exclusions
Section: Chapter Questions
Problem 13DQ
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Transcribed Image Text:Thomas won a new motorcycle from his
employer for being the top salesperson in the
entire firm. The motorcycle cost the employer
only $28,000 because he purchased multiple
bikes from the dealer; it had a retail price of
$32,000. In addition, Thomas's employer gave
him $4,000 with which to pay the taxes on the
prize. How much must Thomas include in his
gross income?
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