acct hw 4

acct hw 4 - 19.) a. Neither has an increase in their gross...

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Bryan Whalen 3.) The relevant issue is whether or not these payments made by Pearl are included in gross income for the employees. 4.) Wade’s gross income will increase by $10,000 but Jim’s gross income will stay the same. 6.) Ted does not have to recognize the gain of $1800. 8.) Ed must include the $6000 gain in his gross income. Sarah does not have to record a gain because she is terminally ill. 9.) Jose must the $6000 in gross income because room and board are not excludible. 10.) She should accept the counteroffer because punitive damages are taxable whereas her lost wages are not taxable because they were caused by the accident. 11.) She should include $240,000 in gross income. 13.) Holly does not have to include the $12000 in gross income because workers compensation is tax-exempt, but Jill must include it in her gross income. 17.) Ted has no income because he is allowed a discount of up to 15% to be tax free (3600/24000). He is only receiving a discount of 13%.
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Unformatted text preview: 19.) a. Neither has an increase in their gross income because Tom is allowed to exclude up to $215 per month for parking and Ted is allowed to exclude up to $110 per month for the bus. b. Their taxes are not changed because of commuting to and form work because all of their costs are excludible. 24.) Author must recognize $6100 from interest in his gross income. Peggy and Robert have not tax consequences. 28.) Wilbers gross income will increase by $7500 only. The transfer of real estate and life insurance proceeds are exclusions. 31.) a. yes b. yes c. no (no-additional cost) d. no 34.) a. increase of $7500 b. Willys gross income is unaffected, but his father has an increase of $17000 in his gross income. 36.) a. increase of 50,000+1,000=$51,000 b. yes 41.) $15600-7200=8400 exclusion. She must recognize 9000-8400=$600 in gross income 49.) 2007: $95,000 + $135,000=$230,000 2008: $275,000-87,500=$187,500 50.) 600+300+150+1600=$2650...
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acct hw 4 - 19.) a. Neither has an increase in their gross...

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