QuestionFebruary 2, 2026

The Nalure of cires Income (L0 2.1) lane is a rooflng contractions. Jane's friend merded a new roof but did not have the cash lo piry. lare's friend Instead (wild with a used truk that Jane could us in har roofing busina ". The truck had originally cost the friend 17,500 but It was ipitly used and only worth 56,000 Jane Uit not actually need the truck and 'ended up selling it to a used tar dealar for 45,200 a few months laler. What amount of gros income Jane must resognize as a itsult of the truck porment. square why? There square moception in the law for nencash temsirorived In excluing for services.

The Nalure of cires Income (L0 2.1) lane is a rooflng contractions. Jane's friend merded a new roof but did not have the cash lo piry. lare's friend Instead (wild with a used truk that Jane could us in har roofing busina ". The truck had originally cost the friend 17,500 but It was ipitly used and only worth 56,000 Jane Uit not actually need the truck and 'ended up selling it to a used tar dealar for 45,200 a few months laler. What amount of gros income Jane must resognize as a itsult of the truck porment. square why? There square moception in the law for nencash temsirorived In excluing for services.
The Nalure of cires Income (L0 2.1)
lane is a rooflng contractions. Jane's friend merded a new roof but did not have the cash lo piry. lare's friend Instead (wild with a used truk that Jane could us in har roofing busina ". The
truck had originally cost the friend 17,500 but It was ipitly used and only worth 56,000
Jane Uit not actually need the truck and 'ended up selling it to a used tar dealar for
45,200 a few
months laler.
What amount of gros income Jane must resognize as a itsult of the truck porment.
square 
why?
There square  moception in the law for nencash
temsirorived In excluing for services.

Solution
4.6(336 votes)

Answer

56,000 Explanation 1. Determine the Fair Market Value (FMV) of the Truck The FMV of the truck is given as 56,000. 2. Calculate the Gross Income Recognized Gross income from services is recognized at the FMV of the property received. Therefore, Jane must recognize 56,000 as gross income.

Explanation

1. Determine the Fair Market Value (FMV) of the Truck<br /> The FMV of the truck is given as $56,000$.<br /><br />2. Calculate the Gross Income Recognized<br /> Gross income from services is recognized at the FMV of the property received. Therefore, Jane must recognize $56,000$ as gross income.
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