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Arturiano [62]
4 years ago
11

Professor vanessa lazo received a free tour to costa rica in a drawing at a professional conference. Professor lazo has asked fo

r your help in determining whether the free tour that she received is taxable. She understands that prizes and awards are taxable income to the recipient, but she does not think the free tour qualifies as a prize or award and is, therefore, not taxable.
Business
1 answer:
Zarrin [17]4 years ago
4 0

Answer: The fair market value of the free tour to Costa Rica is a taxable income.

Professor Vanessa Lazlo won the free tour in a draw, where a prize is awarded by chance.

Publication 525 of the IRS defines taxable and non taxable income.

The IRS lists winnings from raffles and lotteries under Other income.

It also declares that the fair market value of winnings from raffles and lotteries are winnings from gambling. Hence the fair market values of non cash prizes are taxable and must be included as income.



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3 years ago
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Which term refers to the interest the Federal Reserve Bank (Fed) charges banks for loans? open‑market sale fractional banking re
balu736 [363]

Answer:

Which term refers to the interest the Federal Reserve Bank (Fed) charges banks for loans?

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the discount rate is the interest rate that the Federal Reserve System charges banks for the loans it makes. The overnight rate or the federal funds rate is even lower, but it lasts a few hours only.

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3 0
3 years ago
Which selection below is not a leadership style
EastWind [94]
Autocratic
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6 0
4 years ago
Bad Debts account has a credit balance of $8,000 before the adjusting entry for bad debts expense. After analyzing the accounts
White raven [17]

Answer:

$14,300

Explanation:

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5 0
3 years ago
A company purchased new equipment for $48,000. The company paid cash for the equipment. Other costs associated with the equipmen
brilliants [131]

Answer:

The cost recorded will be $53,400

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By simply doing some additions, we will be okay.

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3 years ago
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