Unless ststaed otherwise assume all people are US citizens and cash method taxpayers. 1-29. Danson works at
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1-29. Danson works at the local bowling alley. The bowling alley has a very special bowling ball (the "Billy Bones Bowling Ball," or the "Ball") on display behind the counter. The great and very famous bowler Billy Bones once owned the Ball (it is even autographed by Billy himself). Danson's boss Andy, the Ball's current owner, purchased the Billy Bones Bowling Ball at a garage sale from a legally blind old man for $20. The Ball's fair market value at the time Andy bought it was $9,433. Andy knew what the Ball's fair market value was, but didn't let on at all (he wasn't sure if the old man was really blind). Danson is what you might call a disgruntled employee. So one day when he is cleaning up after closing, Danson decides to take the Ball for himself (he steals it). Danson takes the bowling ball home and puts it on display with his other treasured possessions. On the day Danson steals the bowling ball (December 11, 2017) the bowling ball's fair market value is $25,000. Danson does not report the value of the Ball on his 2017 federal income tax return (he would have, but there was no line for stolen bowling balls on the return). Now begins a series of unfortunate events. One day in early 2018 (February 18, 2018) Danson attends a Beta Alpha Crybaby party. Danson likes to show off a bit, so he took the Ball with him to the party. While driving home from the party, Danson is stopped by a policeman (you guessed it, "dirty" Harry Callahan). Danson had been drinking a bit (Okay, a lot. But before he left the party he drank a Red Bull, took a five hour energy, and had a breath mint, so he thought he'd be okay). So when Harry stops Danson, Danson is off the charts on the Breathalyzer (even with the breath mint...). Harry demands a gift of $50,000 or he will have to arrest Danson. Danson doesn't have $50,000, so he offers to give Harry the Ball instead of the $50,000. Danson knows that the Ball's fair market value at that time is $300,000. (Billy Bones has recently been inducted into the semi-professional bowlers hall of fame), but he really doesn't want to get arrested. Harry, who is an avid bowler and a big fan of Billy Bones, accepts at once. He takes the Ball and since Danson is in no condition to drive, Harry drives Danson home. 1-29. Danson works at the local bowling alley. The bowling alley has a very special bowling ball (the "Billy Bones Bowling Ball," or the "Ball") on display behind the counter. The great and very famous bowler Billy Bones once owned the Ball (it is even autographed by Billy himself). Danson's boss Andy, the Ball's current owner, purchased the Billy Bones Bowling Ball at a garage sale from a legally blind old man for $20. The Ball's fair market value at the time Andy bought it was $9,433. Andy knew what the Ball's fair market value was, but didn't let on at all (he wasn't sure if the old man was really blind). Danson is what you might call a disgruntled employee. So one day when he is cleaning up after closing, Danson decides to take the Ball for himself (he steals it). Danson takes the bowling ball home and puts it on display with his other treasured possessions. On the day Danson steals the bowling ball (December 11, 2017) the bowling ball's fair market value is $25,000. Danson does not report the value of the Ball on his 2017 federal income tax return (he would have, but there was no line for stolen bowling balls on the return). Now begins a series of unfortunate events. One day in early 2018 (February 18, 2018) Danson attends a Beta Alpha Crybaby party. Danson likes to show off a bit, so he took the Ball with him to the party. While driving home from the party, Danson is stopped by a policeman (you guessed it, "dirty" Harry Callahan). Danson had been drinking a bit (Okay, a lot. But before he left the party he drank a Red Bull, took a five hour energy, and had a breath mint, so he thought he'd be okay). So when Harry stops Danson, Danson is off the charts on the Breathalyzer (even with the breath mint...). Harry demands a gift of $50,000 or he will have to arrest Danson. Danson doesn't have $50,000, so he offers to give Harry the Ball instead of the $50,000. Danson knows that the Ball's fair market value at that time is $300,000. (Billy Bones has recently been inducted into the semi-professional bowlers hall of fame), but he really doesn't want to get arrested. Harry, who is an avid bowler and a big fan of Billy Bones, accepts at once. He takes the Ball and since Danson is in no condition to drive, Harry drives Danson home.
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Answer rating: 100% (QA)
1 Andy realizes no income when he purchases the Ball for 20 2 Andy recognizes no income when he purchases the Ball because he paid less than the Balls fair market value 3 There is no character of inco... View the full answer
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