Exchange vs Nonexchange Transactions

Classify each transaction below as exchange or nonexchange. If it is a nonexchange transaction, classify it in one of the four categories of nonexchange transactions. Explain your answer.

1. Merchant collects state cigarette tax on sale of a pack of cigarettes.

2. State reimburses schools for costs related to special education of handicapped children. The school must verify eligibility of the children.

3. State fines for hunting illegally on protected state wildlife preserve.

4. City property taxes are paid by owner.

5. Hotel tax is collected at checkout.

6. Donor provides $300,000 to a city homeless shelter and specifies $100,000 may be spent each year.

7. County landfill collects fee from citizen dumping trash.

8. Income tax is withheld from an employee's paycheck.

9. A business donates cash for scholarships to a public university and specifies the scholarships must be for study abroad.

10. A corporation makes a grant to a public university to conduct research on genetics coding, and the university agrees to give the corporation all patent rights on results of the genetic coding research.