In 2007 Tiger Woods agreed to a cover shot, photo spread, and interview with Men's Fitness...

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In 2007 Tiger Woods agreed to a cover shot, photo spread, and interview with Men's Fitness magazine in exchange for a sister publication's agreement to forbear publishing an article alleging an extramarital affair involving woods. The sister publication, the National Enquirer, had informed Wood's representative that it had photographic evidence of the golfer having an affair. This agreement was heavily negotiated over several weeks and ultimately formalized into a written document. The article was published in the August 2007 issue of Men's Fitness. 1. Does Woods have income that he must recognize from this transaction? How would the amount of income be determined? 2. Will Woods receive a deduction for this transaction? How would the amount of the deduction be determined? In 2007 Tiger Woods agreed to a cover shot, photo spread, and interview with Men's Fitness magazine in exchange for a sister publication's agreement to forbear publishing an article alleging an extramarital affair involving woods. The sister publication, the National Enquirer, had informed Wood's representative that it had photographic evidence of the golfer having an affair. This agreement was heavily negotiated over several weeks and ultimately formalized into a written document. The article was published in the August 2007 issue of Men's Fitness. 1. Does Woods have income that he must recognize from this transaction? How would the amount of income be determined? 2. Will Woods receive a deduction for this transaction? How would the amount of the deduction be determined?

Answer rating: 100% (QA)

In short the flow of financial Sources requires recogni... View the full answer