Chapter 4 pp exercise - gross income (for taxable year 2009...

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Chapter 4 pp.47 Q.55 Herbert earned $90,000 in salary for January-June; $6,800 in unemployment compensation for July-December; Borrowed $12,000 and withdrew $2,000 from his savings account including $60 interest; Received dividends of $550; Won $1,500 in lottery on a $5 ticket.
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Q.55 Salary $90,000 Unemployment compensation 4,400* Interest income 60 Dividend income 550 Lottery winnings 1,500* Gross income $96,510
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Notes **In ARRTA of 2009, Congress provides that the first $2,400 of unemployment compensation is excluded from
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Unformatted text preview: gross income (for taxable year 2009 only): $6,800 $2,400 exclusion = $4,400 included in gross income. Prior to 2009, unemployment compensation was fully includible in gross income. The $5 cost of the lottery ticket could be deductible as a miscellaneous itemized deduction when taxpayer selects itemized deduction rather than stand deduction. Neither the $12,000 loan nor the $2,000 savings account withdrawal are included in gross income....
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This note was uploaded on 04/26/2010 for the course ACCOUNTING 2251 taught by Professor Sieux during the Spring '08 term at CSU East Bay.

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Chapter 4 pp exercise - gross income (for taxable year 2009...

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