1 During the year, Katrina received the following:

• Dividends of $4,000 from Green Corporation. Katrina's father owns the stock and directed the corporation to send the dividends to Katrina.
• A car worth $30,000 for being the 1,000th customer at a car dealership.
• $5,500 cash gift from her uncle.
• $10,000 inheritance from her grandmother.

What amount must Katrina include in gross income?

A) $30,000

B) $34,000

C) $39,500

D) $49,500

2Tatiana suffers from congestive kidney disease and has been admitted to a nursing home where she is expected to spend the remainder of her life. Her doctor has certified her as chronically ill. In 2021, Tatiana receives $320 per day from her life insurance policy for 100 days ($32,000) as accelerated death benefits. Tatiana's nursing home care costs $300 per day ($30,000 for the 100 days of care). Tatiana will be allowed to exclude

A) $0.

B) $30,000.

C) $32,000.

D) $2,000.

3. Mario is injured and receives $16,000 of income from a disability policy. Mario's employer paid 75% of the disability policy premiums and Mario paid the remainder. In addition, Mario's employer has paid all the $3,000 of premiums on a health policy that paid Mario's doctor bills of $10,000. How much of the benefits must Mario include in income?

A) $3,000

B) $10,000

C) $12,000

D) $16,000