Question
1. In 2020, Amy receives $8,000 (of which $3,000 is earnings) from a qualified tuition program. She uses the funds to pay for tuition and
1. In 2020, Amy receives $8,000 (of which $3,000 is earnings) from a qualified tuition program. She uses the funds to pay for tuition and other qualified higher education expenses. What amount is taxable to Amy?
a.$3,000 WAS WRONG
b.$11,000
c.$0
d.$8,000
2. Wendy is a single taxpayer and pays tuition of $7,800 in 2020. Her 2020 AGI is $66,000. What is the amount of Wendys tuition deduction?
a.$2,000
b.$0
c.$7,800
d.$3,733.33
e.$4,000
3. Alicia loses her job part way through 2020. Her employer pays her wages of $15,450 up through her date of termination. After that, she received $1,600 of unemployment compensation from the state until she gets a new job for which she is paid wages of $1,400 through year end. Based on this information, Alicia's gross income for 2020 is:
a.$18,450
b.$16,850
c.$17,050
d.$21,850
e.$15,450
4. For 2020, the maximum percentage of Social Security benefits that could be included in a taxpayer's gross income is:
a.0%
b.85%
c.50% WAS WRONG
d.75%
e.25%
5. Jack borrows $13,000 from Sawyer Savings and Loan and uses the proceeds to acquire a used car. When the loan balance is $12,000, Jack loses his job and is unable to make payments for three months. When Jack gets a new job, the bank agrees to forgive the missed principal payments and reduces his loan to $11,500. Jack remains solvent even when unemployed. How much cancellation of debt income does Jack have?
a.$0.
b.$500.
c.$2,000.
d.$1,500.
6. Kate acquires a principal residence in 2016 for $200,000 secured by a $180,000 mortgage. In 2020, Kate catches the coronavirus and misses work for 3 months. Her employer stops paying her after 10 days. In 2020 when the mortgage balance is $170,000, Kate and the bank revise her terms and lower the loan balance to $150,000. The market value of the home remains above $200,000. How much cancellation of debt income will Kate recognize?
a.$170,000.
b.$150,000.
c.$0.
d.$10,000.
e.$20,000.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started