1. Gross income. During the year, Natasha had several inflows of money. Although her salary was $63,000, her paychecks only totaled $55,000 due to withholding of Federal and State taxes. She took out a $37,000 home equity loan, which she used to remodel her house. She received $4,000 of interest on corporate bonds she owned. How much gross income must Natasha recognize?

2. Amount realized. Gulliver bought a watch for $560 ten years ago. This year, Gulliver sold it on the eCommerce site WebSale.com for $820. WebSale collected a commission fee of $43. What is Gulliver's "amount realized" on the sale?