Question

John works as a landscaper for local businesses on weekends, and he often provides services in exchange for property. This year John provided lawn-mowing services in exchange for $1,275 of car repair services, $3,570 of groceries, and a certificate of deposit (C.D.) for $4,050. The C.D. matures next year with interest. Finally, John received a gift card that can only be applied for $850 of clothing at a local mall. John has only applied the gift card to purchase $100 of clothing. Compute John's gross income assuming that he uses the cash basis of accounting.

Answer 1

All events are satisfied to recognize income. Now it is in the control of john to apply the coupon or not. Thus, his income includes $850 coupon.

Gross income is:

Particulars	Amount
Car repair service	1275
Groceries	3570
CD	4050
Gift card	850
Gross income	9745