Question 14.14. (TCO B) Which of the following is not considered constructive receipt of income?(Points : 5) Ms. K was informed her check for services rendered was available on December 16, 2011, but she waited until January 16, 2012 to pick up the check.Earned income of Mr. D was received by his agent on December 30, 2011, but not received by D until January 3, 2012.Mr. W received a check on December 30, 2011 for services rendered, but was unable to make a deposit until January 3, 2012.A payment on a sale of real property was placed in escrow on December 16, 2011 but not received by Ms. B until January 10, 2012, when the transaction was closed. Question 15.15. (TCO G) On June 3, 2012, Leon Wren, an electrician, was injured in an accident during the course of his employment. As a result of injuries sustained, he received the following payments during 2012:
Damages for personal injuries: $8,000Worker's compensation: $3,000Reimbursement from his employer's accident and health plan for medical expenses paid by Wren: $1,200The amount to be included in Wren's 2012 gross income should be:(Points : 5) Question 16.16. (TCO F) Hobby expenditures are deductible to the extent of:(Points : 5) Page: 1 2 Page 2 Question 1.1. (TCO E) In 2012, Uriah Stone received the following payments:Interest on refund of federal income tax for 2011: $400Interest on award for personal injuries in 2009 automobile accident: $300Interest on municipal bonds: $1,500United States savings bonds interest (Series H): $1,000What amount, if any, should Mr. Stone report as interest income on his 2012 tax return?(Points : 17)Question 2.2. (TCO G) Are any of the following items deductible on an individual's income tax return? If so, would the item be deductible foror fromAGI? Explain each item.(a) Loss on sale of car used for personal purposes(b) Payment of a speeding fine relating to personal activity(c) Uninsured storm damage on personal residence(Points : 17)Question 3.3. (TCO F) Michael and Mary Mason sold for $380,000 in November of 2012 their residence that they had purchased in 2002 for $75,000. They made major capital improvements during their 10-year ownership totaling $25,000.(a) What is their excluded gain? How much must they recognize?(b) Suppose, instead, that the Masons sold their home for $720,000. They moved into a smaller house costing $220,000. What is their excluded gain? How much must they recognize?
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- Winter '11
- Finance, Taxation in the United States