withholding for Federal income taxes is $16,900. (Points: 5)
Sarah receives a $15,000 scholarship from City University. The university specifies
that $8,000 is for tuition, books, supplies, and equipment for classes. The other $7,000 is
for room and board. Sarah works ten hours per week as a grader, for which she is paid
$7,500 for the year. Of the total amount received, Sarah must include the following
amount in gross income: (Points: 5)
In 2009 Bronwyn loaned her son, Juan, $10,000 to help him buy a new computer. In
2010, before he repaid the $10,000, Bronwyn told Juan that she was "tearing up" the
$10,000 note as a graduation present. How should Juan treat the amount forgiven?
taxable income in year of loan
taxable income in year of forgiveness
excludable gift in year of loan
excludable gift in year of forgiveness
For a taxpayer who is not insolvent nor under bankruptcy proceedings, the discharge of
debt is generally: (Points: 5)
none of the above.