FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Anne is a painter and owns house painting company. Last month she painted the lake cottage of amber, a local attorney who performed some litifation work for anne to help in some delinquent bill collection. The painting valued at $1,000 was done in exchange for the litigation work. Neither party charged fees. What should be the tax consequence of these events?

 

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Income tax: Income tax is a tax levied on an individual’s income (taxable income). It is a direct tax which means it is levied on and paid by the same individual. It is a progressive tax which means the tax rates will change according to the changes in the level of income.

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