While staying at vacation motels resort wilson falls

This preview shows page 94 - 97 out of 119 pages.

Question 17 (5 points) While staying at Vacation Motels Resort, Wilson falls over a pool cleaning vacuum hose left near the edge of the swimming pool, and suffers severe internal injuries. As part of the settlement, Wilson receives the following amounts: Pain and Suffering$105,000 Loss of Wages16,200 How much of the settlement must be included in Wilson's Gross Income? Student response: Correct Response Student Response Answer Choices a. $ - 0 - b. $ 16,200 c. $ 60,600 d. $105,000 e. $121,200
Image of page 94

Subscribe to view the full document.

Question 18 (5 points) Company Alpha provides its employees with $25,000 of group-term life insurance. How much is included in gross income because of the life insurance? Student response: Correct Response Student Response Answer Choices Question 19 (5 points) Julia spends her summers away from college as a forest ranger in a remote area near Mt. McKinley, Alaska. She lives in a remote dormitory where she also receives free meals. The dormitory's location permits rangers to be on call in case of an emergency. I-The value of the lodging is excluded from Julia's gross income. II-The value of the meals is excluded from Julia's gross income. Student response: Correct Response Student Response Answer Choices Question 20 (5 points) Mark graduated from business school in December 2005. To honor Mark, on January 3, 2006 his uncle gives him two tickets to the Super Bowl. The uncle paid $200 for each ticket. Because he had to report to work at a brokerage firm in Dallas, Texas, on January 15, 2006, he could not use the tickets. Therefore, he sells them for $1,000 each. How much gross income must Mark recognize in 2006 because of these events?
Image of page 95
Student response: Correct Response Student Response Answer Choices Question 1 (5 points) During the current year, Marianne receives the following interest payments: City of Toronto, Ontario Bonds$750 Florida Turnpike Authority 420 Puerto Rico Transportation Authority 630 General Electric Corporate Bonds 850 How much gross income does Marianne have from the interest payments? a. $1,050 b. $1,480 c. $1,600 d. $1,800 e. $1,900 Question 2 (5 points) Bart's spouse, Carla, dies during the current year. Carla's life insurance policy names Bart the sole beneficiary of the $2 million proceeds. Bart invests the $2 million in a bank certificate of deposit (CD). For the current year, Bart earns $98,000 interest from the CD. What are the tax effects of these events for Bart? I-The $98,000 is included in gross income. II-The $2 million is included in gross income.
Image of page 96

Subscribe to view the full document.

Image of page 97

{[ snackBarMessage ]}

Get FREE access by uploading your study materials

Upload your study materials now and get free access to over 25 million documents.

Upload now for FREE access Or pay now for instant access
Christopher Reinemann
"Before using Course Hero my grade was at 78%. By the end of the semester my grade was at 90%. I could not have done it without all the class material I found."
— Christopher R., University of Rhode Island '15, Course Hero Intern

Ask a question for free

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern