Requirements: 1. Items to be located Locate two primary items and one secondary item of authority (Internal Revenue Code, Treasury Regulations, Revenue Rulings, Revenue Procedures, cases, etc.). Review Chapter 2 for the sources clarification. 2. Assignments (1) For each item located, turn in one paragraph summary of the item and one paragraph of how the item was located with one page attachment of each item located. (2) Prepare a memo stating the facts and your conclusion and analysis. (3) The summary and memo must be typed and printed on a word processor in your own words. 3. Points Available and Due Date Select one case below and a maximum of 10 points are available to the selected case. Turn in assignment on time according to the syllabus. Problem # 1 A client, Vara Voom, is a swimsuit model. She is paid as an independent contractor. She noticed that she was not getting much work and after much consideration, decided to have breast enhancement surgery. After the surgery, her work level picked up. She is asking if she can deduct the cost of the surgery as a business expense. Would it be deductible elsewhere is it cannot be a business expense? Problem # 2 An individual client owns a piece of vacant land. Currently the land is not being used for any purposes. A qualified nonprofit organization approached the client and asked if the organization could use the land free of charge for its program services. The client is asking if he can deduct anything if he lets the organization use the land free of charge. Problem #3 Professor X, an employee at Super University, decided to teach a short course for a professional group downtown. After realizing that part of the material would require a lot of extra preparation and that a specialist could do a much better job, he called on a qualified fellow employee, Professor Y, to teach one-third of the short course. Subsequently, one-third of the fee was paid to Y and two-thirds was paid to X. Professor X attempted, unsuccessfully, to have one-half of the fee paid to Professor Y to compensate for his being called in on short notice to get Professor X off the hook. Professor Y refused to accept the additional fee, indicating that he had only taught one-third of the course and that only one-third of the fee was due him. At Christmas time, Professor X made another attempt to compensate Professor Y. This time the large quantity of very old Scotch whisky was accepted. The liquor cost Professor X $500. Please advise the professors as to the tax consequences of the gift