Karl works at Moe’s grocery. This year Karl was paid $43,000…
Karl works at Moe’s grocery. This year Karl was paid $43,000 in salary but he was also in debt to Moe’s for a loan Moe’s gave him when Karl started his employment. This year, in appreciation for Karl’s tenth anniversary of service, Moe’s gave Karl an engraved silver goblet with his name and “In appreciation of 10 years of service” on it. The goblet was worth $350. Moe’s also forgave the balance of Karl’s debt in the amount of $4,500. What amount must Karl include in his gross income related to the events above?
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