Question: The $ 1 0 , 0 0 0 that John received is compensationremunerationcompensation for services and, therefore, must be included in his grossnetgross income. The

The $10,000 that John received is
compensationremunerationcompensation
for services and, therefore, must be included in his
grossnetgross
income. The $100,000 that John inherited is
expenseincomeincome
. Finally, the $5,000 that John
borroweddonatedborrowed
is not
an expenseincomeincome
because he has an offsetting
assetliabilityasset
to repay this money, so there is no accession to wealth

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