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

Question

Quizplus · Accepted Answer

Tighe must include the fair market value of the automobile ($37,000) plus the cash given to pay taxes ($5,000) in his gross income, totaling $42,000.

Tighe Won a New Automobile from His Employer for Being