A- $0 43. All of the following would be excluded from income as a qualified scholarship by an individual who is a candidate for a degree at a qualified educational institution, except: D - Room and Board
44. Ron Rake is a candidate for a master's degree at State University. During 2013, he was granted a fellowship that provided: Tuition $8,000 Books and supplies 1,500 Room 2,000 Board 1,000 What is the amount Ron may exclude from gross income for 2013? C - $9,500 45. During 2013, under a qualified written plan for educational assistance, Jake Jenner's employer paid Local University $9,200 on Jake's behalf: $7,500 for tuition, books, supplies, and lab fees and $1,700 for lodging. What is the amount of assistance that Jake should include in his gross income for 2013 if the payment was before May 1, 2013? B - $3,950 46. Sandra Bellows purchased a 15-year annuity for $25,000. Starting at the beginning of the year, Sandra will receive $200 per month. What is the total amount that Sandra can exclude from her gross income from her annuity this year?D - $1,667 47. Linda Smith paid $25,000 in premiums on a 20-year endowment policy on her life. The policy has a face value of $40,000. At age 60, Linda decides to collect the face value of the policy. In the year of collection, how much will Linda include in her taxable income? B - $15,000 48. In 2015, Max is 85 years of age and single. He received Social Security payments totaling $14,000 (this includes Medicare premium of $600), dividend and interest income of $21,000, a pension of $30,000 and a taxable IRA benefits of $16,000. What is Max's adjusted gross income for 2015? B - $78,900 49. Mr. and Mrs. Clark are both 72 years of age, married, filing jointly. They received social security benefits of $7,500 each. Additional income is a taxable pension of $12,000 for Mr. Clark and $6,000 for Mrs. Clark. What is the taxable portion of the social security benefits received by the Clarks?D - $0 50. Mr. and Mrs. Garden filed a joint return for 2013. Mr. Garden received $8,000 in Social Security benefits 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 2013? A - $0 51. Cyril, who is 68 years of age, received Social Security benefits of $12,000, wages of $5,000, interest and dividends of $4,000, unemployment compensation of $5,400 and municipal bond interest of $1,500. Calculate Cyril's adjusted gross income. D - $12,000 52. In 2013, Jake and Mary Jacobs, a married couple, have specially modified adjusted gross income $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? E - $0 53. Todd is a cash-basis taxpayer. Daren Corporation made the following payments to or on behalf of Todd during 2013. Note received in lieu of bonus (Fair market value $3,000, no payments made in 2013) $5,000
Advance commissions for services to be performed in the future 1,000 Group-term life insurance premium paid by 100 Daren Corporation on insurance coverage of $50,000 What amount should Todd report as income in 2013?