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

Exercise 33

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