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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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- Spring '08