Question

Zander is a self-employed computer repairman. Amy is a housekeeper. Both are members of a barter club. They agreed to exchange their services for payment. Zander removed a virus from Amy's computer, and Amy deep cleaned Zander's home. Zander usually charges $500 for virus removal, and Amy usually charges $300 for deep cleaning a home like Zander's. During the year, Zander had cash income of $19,500 and credit card income of $17,300. What is the total of Zander's gross receipts?
$17,300
$36,800
$37,100
$37,300

Answer 1

Gross receipts = cash + credit card receipts + FMV of services received in barter.

19,500 + 17,300 + 300 (value of the deep cleaning Zander received) = 37,100.