McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 1

Tim is a plumber who joined a barter club.This year Tim exchanges plumbing services for a new roof.The roof is properly valued at $2,500, but Tim would have only billed $2,200 for the plumbing services.What amount of income should Tim recognize on the exchange of his services for a roof? Would your answer change if Tim would have normally billed $3,000 for his services?