30. LO.1, 2 Determine Amos Watkins’s gross income in each of the following cases:

a. In the current year, Amos purchased an automobile for $25,000. As part of the transaction, Amos received a $1,500 rebate from the manufacturer.

b. Amos sold his business. In addition to the selling price of the stock, he received

$50,000 for a covenant not to compete—an agreement that he will not compete with his former business for five years.

c. Amos owned some land he held as an investment. As a result of a change in the zoning rules, the property increased in value by $20,000.