Chapter 5 Questions
(LO 2) Fred said in will his nephew John should serve as executor of Freds estate. John received
$10,000 for serving as executor. Can John exclude the $10,000 from his GI? The $10,000 that John
received is compensation for services
(LO 1) Mason performs services for Iz. Employee or Independent Contractor?
Performs services only for Iz and does not work for anyone else. Employee.
Reports his job-related expenses on a Schedule C. Independent contractor.
TAX FORMULA AND TAX DETERMINATION;
AN OVERVIEW OF PROPERTY TRANSACTIONS
SOLUTIONS TO PROBLEM MATERIALS
(LO 1) Inclusions in gross income include items b., c., f., g., h., and i. Item e. is a nontaxable return of capital.