For each of the following independent situations, indicate theamount the taxpayer must include in gross income and explain youranswer: (Leave no answer blank. Enter zero if applicable.)
a. Phil won $780 in the scratch-off statelottery. There is no state income tax.
Amount to be included?
b. Ted won a compact car worth $17,900 in a TVgame show. Ted plans to sell the car next year.
Amount to be included?
c. Al Bore won the Nobel Peace Prize of$707,500 this year. Rather than take the prize, Al designated thatthe entire award should go to Weatherhead Charity, a tax-exemptorganization.
Amount to be included?
d. Jerry was awarded $3,200 from his employer,Acme Toons, when he was selected most handsome employee forValentineâs Day this year.
Amount to be included?
e. Ellen won a $1,550 cash prize in a schoolessay contest. The school is a tax-exempt entity, and Ellen plansto use the funds to pay her college education.
Amount to be included?
f. Gene won $740 in the office March Madnesspool.
Amount to be included?
For each of the following independent situations, indicate theamount the taxpayer must include in gross income and explain youranswer: (Leave no answer blank. Enter zero if applicable.)
a. Phil won $780 in the scratch-off statelottery. There is no state income tax.
Amount to be included?
b. Ted won a compact car worth $17,900 in a TVgame show. Ted plans to sell the car next year.
Amount to be included?
c. Al Bore won the Nobel Peace Prize of$707,500 this year. Rather than take the prize, Al designated thatthe entire award should go to Weatherhead Charity, a tax-exemptorganization.
Amount to be included?
d. Jerry was awarded $3,200 from his employer,Acme Toons, when he was selected most handsome employee forValentineâs Day this year.
Amount to be included?
e. Ellen won a $1,550 cash prize in a schoolessay contest. The school is a tax-exempt entity, and Ellen plansto use the funds to pay her college education.
Amount to be included?
f. Gene won $740 in the office March Madnesspool.
Amount to be included?
Related questions
1. Anne purchased an annuity from an insurance company that promised to pay her $33,000 per year for the next ten years. Anne paid $226,050 for the annuity, and in exchange she will receive $330,000 over the term of the annuity.
Amount to be included: ?
2. b.How much income will Anne recognize over the term of the annuity?
Income recognized?
3. For each of the following independent situations, indicate the amount the taxpayer must include in gross income: (Leave no answer blank. Enter zero if applicable.)
a. Phil won $585 in the scratch-off state lottery. There is no state income tax.
Amount to be included?
4. For each of the following independent situations, indicate the amount the taxpayer must include in gross income: (Leave no answer blank. Enter zero if applicable.)
b. Ted won a compact car worth $17,800 in a TV game show. Ted plans to sell the car next year.
Amount to be included?
5. For each of the following independent situations, indicate the amount the taxpayer must include in gross income: (Leave no answer blank. Enter zero if applicable.)
c. Al Bore won the Nobel Peace Prize of $742,500 this year. Rather than take the prize, Al designated that the entire award should go to Weatherhead Charity, a tax-exempt organization.
Amount to be included?
6. For each of the following independent situations, indicate the amount the taxpayer must include in gross income: (Leave no answer blank. Enter zero if applicable.)
d. Jerry was awarded $4,375 from his employer, Acme Toons, when he was selected most handsome employee for Valentineâs Day this year.
Amount to babe included?
7. For each of the following independent situations, indicate the amount the taxpayer must include in gross income: (Leave no answer blank. Enter zero if applicable.)
e. Ellen won a $1,210 cash prize in a school essay contest. The school is a tax-exempt entity, and Ellen plans to use the funds to pay her college education.
Amount to be included?
8. For each of the following independent situations, indicate the amount the taxpayer must include in gross income: (Leave no answer blank. Enter zero if applicable.)
f. Gene won $435 in the office March Madness pool.
Amount to be included?
9. For each of the following situations, indicate how much the taxpayer is required to include in gross income: (Leave no answer blank. Enter zero if applicable.)
a. Steve was awarded a $7,600 scholarship to attend State Law School. The scholarship pays Steve's tuition and fees.
Amount to be included?
10. For each of the following situations, indicate how much the taxpayer is required to include in gross income: (Leave no answer blank. Enter zero if applicable.)
b. Hal was awarded a $15,600 scholarship to attend State Hotel School. All scholarship students must work 35 hours per week at the School residency during the term.
Amount to be included?
11. Irene is disabled and receives payments from a number of sources. The interest payments are from bonds that Irene purchased over past years and a disability insurance policy that Irene purchased herself.
| Interest, bonds issued by City of Austin, Texas | $ | 3,050 |
| Social Security benefits | 9,650 | |
| Interest, U.S. Treasury bills | 2,050 | |
| Interest, bonds issued by Ford Motor Company | 1,250 | |
| Interest, bonds issued by City of Quebec, Canada | 1,330 | |
| Disability insurance benefits | 22,400 | |
| Distributions from qualified pension plan | 8,100 | |
Calculate Ireneâs gross income.
Gross income?
