Required information

Problem $5-43($LO $5-1)($Algo$)$

$[$The following information applies to the questions displayed below.$]$

Although Hank is retired, he is an excellent handyman and often works part time on small projects for neighbors and

friends. Last week his neighbor, Mike, offered to pay Hank $$710$ for minor repairs to his house. Hank completed the

repairs in December of this year. Hank uses the cash method of accounting and is a calendar$-$year taxpayer. Compute

Hank's gross income for this year from each of the following alternative transactions:

Problem $5-43$ Part c $($Algo$)$

c$.$ Mike bought Hank a new set of snow tires and gave them to Hank in December. The tires typically sell for $$710,$ but Mike bought

them on sale for $$639.$

Gross Income