Shady Slim/Comprehensive Gross Income Problem
To my friendly student tax preparer:
Hello, my name is Shady Slim. I understand you are going to help me
figure out my gross income for the year…whatever that means. It’s
been a busy year and I’m a busy man, so let me give you the lowdown
on my life and you can do your thing.
I was unemployed at the beginning of the year and got $2,000 in
unemployment compensation. I later got a job as a manager for Roca
Cola. I earned $55,000 in base salary this year. My boss gave me a
$5,000 Christmas bonus check on December 22. I decided to hold on
to that check and not cash it until next year, so I won’t have to
pay taxes on it this year. Pretty smart, huh? My job’s pretty cool.
I get a lot of fringe benefits like a membership to the gym that
costs $400 a year and all the Roca Cola I can drink, although I
can’t really drink a whole lot. I figure $40 worth this year.
As part of my manager duties, I get to decide on certain things
like contracts for the company. My good buddy, Eddie, runs a
bottling company. I made sure that he won the bottling contract for
Roca Cola for this year (even though his contract wasn’t quite the
best). Eddie bought me a Corvette this year for being such a good
friend. The Corvette cost $50,000 and I’m sure he bought it for me
out of the goodness of his heart. What a great guy!
Here’s a bit of good luck for the year. Upon leaving my office one
day, I found $8,000 lying in the street! Well, one person’s bad
luck is my good luck, right?
I like to gamble a lot. I won a $32,000 poker tournament in Las
Vegas this year. Can you believe that I didn’t lose anything this
year?
Speaking of the guys, one of them hit me with his car as we were
leaving the game one night. He must have been pretty ticked that he
lost! I broke my right leg and my left arm. I sued the guy and got
$11,000 for my medical expenses, $3,000 to pay my psychotherapist
for the emotional problems I had relating to the injuries (I got
really depressed!), and I won $12,000 in punitive damages. That’ll
teach him that he’s not so tough without his car!
Another bit of bad luck. My uncle Monty died this year. I really
liked the guy, but the $200,000 inheritance I received from him
made me feel a little better about the loss. I did the smart thing
with the money and invested it in stocks and bonds and socked a
little into my savings account. As a result, I received $600 in
dividends from the stock, $200 in interest from the municipal
bonds, and $300 in interest from my savings account.
My ex-wife, Alice, is still paying me alimony. She’s a lawyer who
divorced me in 2015 because I was “unethical” or something like
that. Since she was making so much money and I was unemployed at
the time, the judge ruled that she had to pay ME alimony. Isn’t
that something? She sent me $3,000 in alimony payments this year.
She still kind of likes me, though. She sent me a check for $500 as
a Christmas gift this year. I didn’t get her anything,
though.
So there you go. That’s the year in a nutshell. Can you figure out
my gross income and complete for me? And since you’re a student,
this is free, right? Thanks, I owe you one! Let me know if I can
get you a six-pack of Roca Cola or something.
Statement of Gross Income Shady Slim | |||
Pariculer | Note | Amount(In $) | |
unemployment compensation | 2000 | ||
Manager In Roca Cola | |||
Salary | 55000 | ||
Bonus | 5000 | 1 | |
Gym Cost | 400 | 2 | |
Drink | 40 | 60440 | |
Corvette cost | 50000 | ||
Street Money | 8000 | ||
Gambling From Poker | 32000 | ||
Punitive Damages | 12000 | ||
Medical Expence Received | 3 | 0 | |
Inheritence | 200000 | ||
Dividend from stock | 600 | ||
Interest from Municipal Bond | 200 | ||
Interest form Saving Account | 300 | ||
Christmas gift this year | 500 | ||
alimony payments | 3000 | ||
Total | 369040 | ||
Note | |||
1. Even though not encashed, still taxable | |||
2. Allowance is a part of income. | |||
3. Medical Exp reimbursement is not income |
Shady Slim/Comprehensive Gross Income Problem To my friendly student tax preparer: Hello, my name is Shady...
To my friendly student tax preparer: Hello, my name is Shady Slim. I understand you are going to help me figure out my gross income for the year . . . whatever that means. It’s been a busy year and I’m a busy man, so let me give you the lowdown on my life and you can do your thing. I was unemployed at the beginning of the year and got $2,000 in unemployment compensation. I later got a job...
To my friendly student tax preparer: Hello, my name is Shady Slim. I understand you are going to help me figure out my gross income for the year . . . whatever that means. It’s been a busy year and I’m a busy man, so let me give you the lowdown on my life and you can do your thing. I was unemployed at the beginning of the year and got $2,000 in unemployment compensation. I later got a job...
Hello, my name is Shady Slim. I understand you are going to help me figure out my gross income for the year... whatever that means. It's been a busy year and I'm a busy man, so let me give you the lowdown on my life and you can do your thing I was unemployed at the beginning of the year and got $2,000 in unemployment compensation. I later got a job as a manager for Roca Cola. I earned $56,500...
76. Consider the following letter and answer Shady's question. To my friendly student tax preparer: Hello, my name is Shady Slim. I understand you are going to help me figure out my gross income for the year whatever that means. It's been a busy year and I'm a busy man, so let me give you the lowdown on my life and you can do your thing. I was unemployed at the beginning of the year and got $2,000 in unemployment...
Shady Slim / Comprehensive Deductions Problem Read the following letter and help Shady Slim with his tax situation. Assume that gross income is $172,900 (which consists only of salary) and ignore AGI thresholds for purposes of this problem. December 31, 2020 To the friendly student tax preparer: Hi, it’s Shady Slim again. I just got back from my 55th birthday party, and I’m told that you need some more information from me in order to complete my tax return. I’m...
Required information [The following information applies to the questions displayed below.] Read the following letter and help Shady Slim with his tax situation. Please assume that gross income is $172,900 (which consists only of salary) for purposes of this problem. December 31, 2018 To the friendly student tax preparer: Hi, it’s Shady Slim again. I just got back from my 55th birthday party, and I’m told that you need some more information from me in order to complete my tax...
Hello, my name is Shady Slim. I understand you are going to help me figure out my gross income for the year... whatever that means. It's been a busy year and I'm a busy man, so let me give you the lowdown on my life and you can do your thing I was unemployed at the beginning of the year and got $2,000 in unemployment compensation. I later got a job as a manager for Roca Cola. I earned $57,500...
Read the following letter and help Shady Slim with his tax situation. Please assume that his gross income is $172,900 (which consists only of salary) for purposes of this problem. December 31, 2019 To the friendly student tax preparer: Hi, it’s Shady Slim again. I just got back from my 55th birthday party, and I’m told that you need some more information from me in order to complete my tax return. I’m an open book! I’ll tell you whatever I...
Read the following letter and help Shady Slim with his tax situation. Please assume that his gross income is $172,900 (which consists only of salary) for purposes of this problem. December 31, 2019 To the friendly student tax preparer: Hi, it’s Shady Slim again. I just got back from my 55th birthday party, and I’m told that you need some more information from me in order to complete my tax return. I’m an open book! I’ll tell you whatever I...
Read the following letter and help Shady Slim with hls tax situation. Please assume that his gross Income Is $173,520 (which consists only of salary) for purposes of this problem. December 31, 2018 To the frlendly student tax preparer: HI·it's Shady Slim again. I just got back from my 55th birthday party, and I'm told that you need some more information from me In order to complete my tax return. I'm an open book! I'll tell you whatever think you...