During the current year eleanor receives land valued

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Question 7 (5 points) During the current year, Eleanor receives land valued at $30,000 from the estate of her grandfather. Her grandfather's basis in the land was $8,000. Eleanor sells the land for $34,000 late in the year. Eleanor's gross income is: a. $ - 0 - b. $ 4,000 c. $ 8,000 d. $16,000 e. $26,000 Question 8 (5 points) Ally served as chairperson of the local school board. Upon completion of her term in office, the employees in the school district offices take up a collection and purchase her a silver sterling tray in recognition of her outstanding service to the organization. The value of the tray is $200. What are the tax effects of the award? I-This is not an employer/employee relationship; exceptions for awards do not apply. II-The value of the tray is included in gross income because of services rendered. Question 9 (5 points) The tax law allows the exclusion of general types of employment-related fringe benefits provided they are made available to employees on a nondiscriminatory basis. Which of the following must be provided on a nondiscriminatory basis to be excluded from income? I-De minimis fringe benefits. II-Employee discounts. III-No additional cost services. IV-Working-condition fringes.
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Question 10 (5 points) Angie is injured in an automobile accident and sues the driver of the truck that struck her car. The court finds the driver liable and awards Angie $10,000 to pay her medical expenses, $20,000 for her pain and suffering, and $5,000 for loss of income while she was unable to work. The court also finds the truck driver negligent and awards Angie $50,000 in punitive damages. Which of the following statements concerning the receipt of these payments is/are correct? I-Angie is not taxed on any of the payments because they relate to a personal physical injury. II-Angie must include the loss of income payment in her gross income. III-The punitive damage payment is taxable. Question 11 (5 points) On her 18th birthday, Anna's grandfather gave her stock worth $70,000. During the current year, Anna receives $5,000 of dividends on the stock, which she uses to pay college expenses. The cost of Anna's tuition, fees, and books is $4,000. Anna's gross income is: a. $ - 0 - b. $ 1,000 c. $ 4,000 d. $ 5,000 e. $75,000
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Christopher Reinemann
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