Question

AaB Aalbec ABCD Aalb Alb Abby Abc ABCD ABCD ABCD Abc Title Subtitle Subtle im. Emphasis intense Strong Quote s Sud e te. Book de Pand Styles Select- Editing 13) Sal was awarded a scholarship to attend State Law School from Gibson Harris & Associates, Attorneys at Law. The scholarship pays Sal's tuition ($7,000 per semester), fees (5500 per semester). and a $4,500 per semester stipend to pay for food and housing. In order to qualify for the stipend, Sal must work 10 hours per week at Gibson Harris & Associates during the term. How much of the scholarship is Sal required to include in gross income? 14) Bobby and Sally got married 25 years ago. Since that time, they have lived in Bobby's home. Sally sold her previous home three years ago and excluded her entre pain (580,000) at that time. Bobby and Sally decided to move to a beper home this year. As a result, they sold Bobby's home for $500,000 (original cost $150,000). How much of the pain from the sale is taxable? 15) Carto purchased an awity from an insuce company that promised to pay him $20.000 per year for the next 12 years Carlton paid $150,000 for the ty. How much of the first $20,000 payment should Canon include in gross income? 16 Charles is a cash method taxpayer who reports on a calendar-year Last year Charles d e of SEX 000 and at year and his employer ounced that Charles would reve a led boos of $10,000 in cash and a new TV worth $2.000. Charles dad e s bascheck January of this year and the TV didn't new Mach of the year De a ls should code in his gross e for last year DELL

Answer 1

Part 13

Scholarship included in gross income = tuition + fees + stipend = 7000+500+4500 = $12000 per semester

The stipend is a part of gross income

Part 14

Taxable gain = $100000

Gain = (500000-150000)-250000 = $100000

Part 15

Gross income = amount received –exclusion = (20000*12)-180000 = 60000, maximum up to first payment

Gross income = 20000

Part 16

Gross income = $88000

(as bonus is not received yet)