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d. Mr. and Mrs. Garden filed a joint return for 2010. Mr. Garden received $8,000 in Social Security benefits 50. and Mrs. Garden received $4,000. Their income also included $10,000 taxable pension income and interest income of $2,000. What part of their Social Security benefits will be taxable for 2010?$ 0a. $6,000b. $24,000c. $12,000d. Cyril, who is 68 years of age, received Social Security benefits of $12,000, wages of $5,000, interest 51. and dividends of $4,000, unemployment compensation of $5,400 and municipal bond interest of $1,500. Calculate Cyril’s adjusted gross income.$22,200.d. In 2010, Jake and Mary Jacobs, a married couple, have specially modified adjusted gross income of 52. $25,000 and $10,000 in social security benefits. If the Jacobs file a joint return, what portion of their social security benefits are included in income for federal income tax purposes?
451TestbankChapter 5What amount should Todd report as income in 2010?$6,100a. $5,100b. $4,100c. $4,000d. Sherwood received disability income of $6,000 for 2010. All premiums on the health and accident policy 54. were paid by his employer and included in Sherwood’s income. In addition, he received compensatory damages of $10,000 as a result of inadvertent poisoning at a local restaurant. He received no other income this year. How much income must Sherwood include on his 2010 tax return?d. BWS Corporation pays the premiums on an $80,000 group-term life insurance policy on the life of its 55. 45-year-old vice-president, Warren. The annual cost per $1000 of coverage for a person aged 45 to 49 is $1.80. If Warren has paid $25 toward the cost of the insurance, what is the cost of the policy includible in Warren’s gross income?Which of the following items is not tax deductible as an education related expense?56. Certain transportation and travel costs