AC425HomeworkCh4 - AC425 Chapter 4 Homework 21. Leah Sarah...

AC425
Chapter 4 Homework
21. Leah Sarah is employed at Cleveland Inc. at an annual salary of $45,000. Leah
received $35,000 in salary in 2015 from Cleveland Inc., a prosperous company. They
credited the unpaid salary to Leah Sarah’s account. Leah only had to stop by the
payroll office to receive her money. In January 2016, Leah Sarah requested and
received the remaining $10,000 of her salary. How much income must Leah Sarah
report on her 2015 income tax return?
23. Fred Miller, a teacher, had several additional sources of income during 2015. He
received a $500 gift as a result of his helping a friend build a house, and he was
assigned $300 of interest due his uncle on bonds his uncle owns. He also had the use
of a van (fair market value $1,000) for the year from his parents who were traveling.
Further, he received free $600 of gasoline for the van because he tutored the son of
the station owner free of charge. What of the additional income must be included in
his income tax return?
24. Helen Troy, a student seeking a Master’s degree in accounting, was awarded a
50% scholarship to graduate school (valued at $3,000) and a $6,000 per year
teaching assistantship (not required of Master’s level students). She also, because of
her great beauty, won first prize in the Miss International Beauty Pageant. The prize
included $14,000 in cash, a $25,000 car, a $10,000 scholarship, and travel expenses
of $2,000 cash relating to the pageant. What must she include as gross income?
25. Billy Dent, as the owner of an apartment building, receives and makes the
following payments during 2015:
Received in January 2015 rent that was due in December 2014 $5,000
Received in December 2015 rent not due until January 2016 4,000
Security deposit to be refunded when tenant vacates the apartment 500
How much rental income must Billy Dent include on his 2015 income tax return?