Sally is a cash basis taxpayer and a member of the valley barter club. this year sally provided 100 hours of sewing services to the barter club in exchange for two football playoff tickets. which of the following is a true statement?
a) sally need not recognize any gross income unless she sells the football tickets.
b) sally's exchange does not result in taxable income.
c) sally is taxed on the value of the football tickets even if she cannot attend the game.
d) sally is taxed on the value of her sewing services only if she is a professional seamstress.
e) all of these are true.

Costco wholesale corporation operates membership warehouses selling food, appliances, consumer electronics, apparel and other household goods at 471 locations across the u. s. as well as in canada, mexico and puerto rico. as of its fiscal year-end 2005, costco had approximately 21.2 million members. selected fiscal-year information from the company's balance sheets follows. ($ millions). selected balance sheet data 2005 2004 merchandise inventories $4,015 $3,644 deferred membership income (liability) 501 454 (a) during fiscal 2005, costco collected $1,120 cash for membership fees. use the financial statement effectstemplate to record the cash collected for membership fees. (b) in 2005, costco recorded $46,347 million in merchandise costs (that is, cost of goods sold). record thistransaction in the financial statement effects template. (c) determine the value of merchandise that costco purchased during fiscal-year 2005. use the financial statementeffects template to record these merchandise purchases. assume all of costco's purchases are on credit.