Federal Tax Research 10th Edition by Roby Sawyers,William Raabe,Gerald Whittenburg,Steven Gill

Exercise 19

CPA Myrna forgot to tell her client, Freddie, to accelerate the payment of state income and property taxes in a year when Freddie was in an unusually high tax bracket. Upon discovering the error, the parties negotiated a $15,000 payment from Myrna (and her insurance company) to Freddie to compensate Freddie for Myrna's inadequate professional advice. Is this payment gross income to Freddie