Jay receives a 4000 per year scholarship from hanover

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Question 8   (5 points) Jay receives a $4,000 per year scholarship from Hanover College. The college specifies that $2,500 is for tuition,  books, supplies, and equipment for classes. The other $1,500 is for room and board. As part of the conditions of  the scholarship, Jay must also work ten hours per week as a grader, for which he is paid $1,700 for the year. Of the  total amount received, Jay will be include in income:  Student response: Correct Response Student Response Answer Choices a. $1,500
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b. $1,700 c. $2,500 x d. $3,200 e. $5,700 Question 9   (5 points) Polly dies on January 14, 2006. Her spouse, Carl, is the beneficiary of a $100,000 life insurance policy. Carl elects  to receive the proceeds in 10 equal installments of $12,500.In 2006, Carl receives $12,500. The amount included in  Carl's 2006 gross income is  Student response: Correct Response Student Response Answer Choices x Question 10   (5 points) Katherine, age 38, is an employee of National Tools, Inc. Her annual salary is $50,000. After considering the  following list of benefits provided Katherine, determine her gross income for the year. •Katherine has $2,000 of her salary withheld and paid into the company's qualified pension plan. The company  matches the contribution at the rate of $.50 for each $1.00 paid in. •Group-term life insurance policy at twice her annual salary paid by the company. Premium cost is $1.08 per  $1,000 of coverage. •Health and accident insurance policy costing $1,500 paid by the company. •Katherine elects to have $1,800 of her salary paid into a flexible benefits plan to cover childcare costs. She incurs  $2,100 of childcare costs during the year.  Student response: Correct Response Student Response Answer Choices x
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Question 11   (5 points) Danny owes $120,000 to Buddy's Bank. Danny is having financial difficulties during the current year and Buddy's  Bank agrees to reduce Danny's debt to $80,000 to help him get his financial affairs in order and avoid bankruptcy. I-If Danny's assets were $300,000 and his liabilities were $290,000 before the discharge, he is taxed on $10,000 of  the $40,000 debt reduction. II-If Danny's assets were $300,000 and his liabilities were $400,000 before the discharge, he is not taxed on any of  the $40,000 debt reduction.  Student response: Correct Response Student Response Answer Choices x
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Christopher Reinemann
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