Assuming that Claire has no other income her 2010 gross income should be 7500 a

Assuming that claire has no other income her 2010

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Assuming that Claire has no other income, her 2010 gross income should be: $7,500 a. $9,500 b. $12,500 c. $16,000 d. With regard to tax recognition of alimony in connection with a 2010 divorce, which one of the following 37. statements is correct? The divorced couple may be members of the same household at the time payments are made. 38. Jury awarded punitive damages$10,000Kickbacks on sale of goods (not treated as a reduction elsewhere)5,000Money borrowed from a bank8,000Increase in the value of an asset1,000$10,000 e. Rachel Reeves has medical insurance coverage from her employer’s medical insurance policy. The annual 39. premium is $2,000 for Rachel’s coverage, of which Rachel’s employer pays 75 percent. Rachel pays the rest. In 2010, Rachel received an excess reimbursement of $200 from her insurance company. What amount must Rachel include in her gross income? During the current year, Alfred Allen sustained a serious injury in the course of his employment. As a result 40. of this injury, Allen received the following amounts during the same year: Worker’s compensation$2,400Reimbursement from employer’s accident andhealth plan for medical expenses paid by Allen1,800Damages for personal injuries8,000How much of the above amounts should Allen include in his gross income for the current year? $12,000 a. $8,000 b. $1,800 c. $0 d. Randi, a flight attendant, received wages of $30,000 in 2010. The airline provided transportation on a 41. stand-by basis, at no charge, from her home in Detroit to the airline’s hub in Chicago. The fair market value of the commuting flights was $5,000. Also in 2010, Randi received reimbursements, under an accountable plan, of $10,000 for overnight travel, but only spent $6,000. The excess was returned. Randi became disabled in November 2010 and received worker’s compensation of $4,000. What amount must Randi include in gross income on her 2010 tax return?
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449 Testbank Chapter 5
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