Question
Samuel is a self-employed vehicle mechanic. Ivy is a professional dog sitter. Both are members of a barter club. They agreed to exchange their services for payment. Samuel repaired the brakes on Ivy's car, and Ivy cared for Samuel's poodle while he was away on vacation for two weeks. Samuel usually charges $600 for brake repair, and Ivy usually charges $400 for dog sitting. During the year, Samuel had cash income of $18,000 and credit card income of $15,500. What is the total of Samuel's gross receipts?
Answers
GPT-4o mini
To determine Samuel's total gross receipts, we need to consider both his cash income, credit card income, and the value of the services he received from Ivy in the barter exchange.
1. **Cash Income**: $18,000
2. **Credit Card Income**: $15,500
3. **Value of Services Received from Ivy**:
Since Ivy usually charges $400 for dog sitting, that would be the value of the service Samuel received in return for his brake repair.
Now, we can calculate the total gross receipts:
\[
\text{Total Gross Receipts} = \text{Cash Income} + \text{Credit Card Income} + \text{Value of Barter Services}
\]
Substituting the values:
\[
\text{Total Gross Receipts} = \$18,000 + \$15,500 + \$400
\]
Calculating the total:
\[
\text{Total Gross Receipts} = \$33,900
\]
Therefore, Samuel's total gross receipts are **$33,900**.
1. **Cash Income**: $18,000
2. **Credit Card Income**: $15,500
3. **Value of Services Received from Ivy**:
Since Ivy usually charges $400 for dog sitting, that would be the value of the service Samuel received in return for his brake repair.
Now, we can calculate the total gross receipts:
\[
\text{Total Gross Receipts} = \text{Cash Income} + \text{Credit Card Income} + \text{Value of Barter Services}
\]
Substituting the values:
\[
\text{Total Gross Receipts} = \$18,000 + \$15,500 + \$400
\]
Calculating the total:
\[
\text{Total Gross Receipts} = \$33,900
\]
Therefore, Samuel's total gross receipts are **$33,900**.