Tighe won a new automobile from his employer for being the top salesperson in the entire firm. The auto cost the employer only $34,000 because he purchased a fleet of cars from the dealer; it had a retail price of $37,000. In addition, Tighe's employer gave him $5,000 with which to pay the taxes on the prize. How much must Tighe include in his gross income? a. $42,000. b. $37,000. c. $35,000. d. $32,000.

SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter11: Individuals As Employees And Proprietors
Section: Chapter Questions
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Tighe won a new automobile from his employer for being the top
salesperson in the entire firm. The auto cost the employer
only $34,000 because he purchased a fleet of cars from the dealer;
it had a retail price of $37,000. In addition, Tighe's employer gave
him $5,000 with which to pay the taxes on the prize. How much must
Tighe include in his gross income?
a. $42,000.
b. $37,000.
c. $35,000.
d. $32,000.
Transcribed Image Text:Tighe won a new automobile from his employer for being the top salesperson in the entire firm. The auto cost the employer only $34,000 because he purchased a fleet of cars from the dealer; it had a retail price of $37,000. In addition, Tighe's employer gave him $5,000 with which to pay the taxes on the prize. How much must Tighe include in his gross income? a. $42,000. b. $37,000. c. $35,000. d. $32,000.
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