Two days before Halloween, Gene was driving in his car and noticed that he was low on fuel. He stopped at a gas station which offered a free pumpkin with the purchase of a full tank of gas. The pumpkin has a fair market value of $2.00, and the price of the gasoline was the same as at another station located across the street. Gene knew that this deal was too good to be true and so he took advantage of the offer before the station owner realized what a giveaway this was. How much should Gene include in his gross income?© BrainMass Inc. brainmass.com June 3, 2020, 11:38 pm ad1c9bdddf
This $2 value does not need to be reported in gross income. The US government gives this much leeway and does not expect you to report savings ...
The solution is concise and to the point and explains the concepts very well. The solution is very easy to understand as well. Overall, an excellent response to the question being asked.