Discussion Question 5-1 (LO. 1, 2) Fred specified in his will that his nephew John should serve as executor of Fred's estate. John received $10,000 for serving as executor. John inherited $100,000 of cash from his uncle as well. He also borrowed $5,000 when he bought a new car this year. Select a response to the question "Classify each of the amounts received by John using terminology covered in this chapter." The $10,000 that John received is compensation for services and, therefore, must be included in his gross income. The $100,000 that John inherited is Finally, the $5,000 that John is not because he has an offsetting to repay this money so there is no accession to wealth. Discussion Question 5-1 (LO. 1, 2) Fred specified in his will that his nephew John should serve as executor of Fred's estate. John received $10,000 for serving as executor. John inherited $100,000 of cash from his uncle as well. He also borrowed $5,000 when he bought a new car this year. Select a response to the question "Classify each of the amounts received by John using terminology covered in this chapter." The $10,000 that John received is compensation for services and, therefore, must be included in his gross income. The $100,000 that John inherited is Finally, the $5,000 that John is not because he has an offsetting to repay this money so there is no accession to wealth