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In 2012, Norm, a Carpenter, Received a Beach Boat from the Newport

Question 64

Multiple Choice

In 2012, Norm, a carpenter, received a beach boat from the Newport Marina in exchange for carpentry work on a new dock. fte beach boat cost the marina $1,600. fte fair market value of the boat is $2,000. What amount, if any, is includible in Norm's 2012 gross income as a result of this transaction?


A) $2,000
B) $1,800
C) $1,600
D) $400
E) $0

Correct Answer:

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