1) Bart is the favorite nephew of aunt Thelma. Thelma transferred several items of value to Bart. For each of the following transactions, determine the effect on Bart's gross income. (Leave no answer blank. Enter zero if applicable.)

b. Thelma elects to cancel her life insurance policy, and she gives the cash surrender value of $15,000 to Bart.

Amount to be included in gross income = ?

2) 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 $7,700 scholarship to attend State Law School. The scholarship pays Steye's tuition and fees

Amount to be included in gross income = ?

3) Lanny and Shirley divorced in 2018 and do not live together. Shirley has custody of their child, Art, and Lanny pays Shirley $22,000 per year. All property was divided equally.

c. How much should Shirley include in income if Lanny's payments drop to $15,000 once Art reaches the age of 18?

Amount to be included in gross income = ?