Con man Floyd sold Larry the Library of Congress for $ 150,000. Since Larry did not have

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Con man Floyd sold Larry the Library of Congress for $ 150,000. Since Larry did not have that kind of money, he embezzled the $ 150,000 from his employer to make the purchase.

a. How much gross income should Larry and Floyd report as a result of this event?

b. For tax purposes, how will Larry treat any repayment of the embezzlement to his (former) employer?

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Federal Tax Research

ISBN: 9781285439396

10th Edition

Authors: Roby Sawyers, William Raabe, Gerald Whittenburg, Steven Gill

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Question Posted: Oct 30, 2015 02:17 AM

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Con man Floyd sold Larry the Library of Congress for $ 150,000. Since Larry did not have

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a Larry has 150000 of gross income from the embezzlement and Floyd has 150000 of gross income from ...View the full answer

Federal Tax Research

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