87. LO3 Pablo wins a new automobile on a television game show. The car has a listed sticker price of $31,500. A dealer advertises the same car for $30,000. How much income does Pablo have from the receipt of the car? Explain.
88. LO3 Determine the amount of income that must be recognized in each of the following cases:
a. Ramona is a production supervisor for White Company. During the current year, her division had no accidents, and White rewarded the achievement with a $200 cash award to each employee in the division.
b. Lenny retires from the Brice Company this year. At his retirement reception, the company gives him a set of golf clubs valued at $600 in appreciation of his years of loyal service.
c. Fatima is named Humanitarian of the Year by Local City for her volunteer service. She receives a plaque and an all-expense-paid trip to Washington, D.C., where she will meet the president. The value of the trip is $1,400.
d. Sook is a college professor specializing in computer chip development. During the current year, he publishes a paper that explains the design of a revolutionary new chip. Softmicro, Inc., awards him $10,000 for the best breakthrough idea of the year. Sook uses the money to purchase a computer workstation to use in his research.