Taxpayer realize taxable income


In which of the given situations would the taxpayer realize taxable income?

a. A mechanic performs work on his own automobile. The mechanic would have charged a customer $400 for doing the same work.

b. A mechanic repairs his neighbor's personal automobile. In exchange, the neighbor, an accountant, agrees to prepare mechanic's tax return. The services performed are each worth $200.

c. A mechanic repairs his daughter's automobile without any charge.

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Accounting Basics: Taxpayer realize taxable income
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