Find a solution for problem 3

on and had their salaries by the amount of the Therefore, the employees believe they should be permitted to exclude the payments from gross income. The employees have asked you to research the issue. March at the Astros' home opener, as a result of a random drawing of him to a cup of coffee and a free doughnut or a dozen doughnut holes. Research Problem 3. Your client, John Butler, is an avid Houston Astros fan. Last dance at the game, John won 300 Shipley Do-Nut coupons. Each coupon entitled John used some of the coupons (approximately 20), but he found that eating so many doughnuts directly conflicted with his goal of losing weight. The unused cou- pons expired on January 1, 2017. Thus, John was surprised when he received a Fom 1099 in February 2017 that valued his prize at $900. John would like to know whether the value of the doughnut coupons should be included in income and asks you to research his question. If you conclude that their value should be included in income, John also would like to know if he can reduce his gross income by including in income only the value of the coupons that he used. He has the unused coupons as documentation that neither he nor anyone else used them. Research Problem 4. Aubrey Brown is a decorated veteran of the Vietnam War. As a result of his exposure to Agent Orange during the war, Aubrey developed lung can- cer and is unable to work. He received $12,000 of Social Security disability payments