BUSA 427Chapter 5Ch. 5: Question 16Mindy must include $2,000 from “Payment for Research Services” in her gross incomebecause research is taxable, while “Tuition” and “Books and Supplies” are tax free.Ch. 5: Question 17Abigail does not recognize the $6,000 as income. Payments of up to $5,250 per year fromemployer for education assistance are excluded from gross income. Since the expense isover the $5,250, Abigail must find the difference, $750 and this is the amount that isincluded as income.Ch. 5: Question 19The 2017 tax return of McLeod would include the $20,000 rental income. He does notinclude the beach cottage that is valued at $250,000 because it was a gift and gifts arenontaxable.