1. In 20X1, Brandon was hurt in a job related injury. After the injury, Brandon stayed at home to recover, and did not go to work. Brandon had purchased a disability insurance policy that paid him $100,000 in 20X1 to replace that wages that he lost. How much of the $100,000 is includable in Brandons taxable income in 20X1?

Group of answer choices

$100,000

$50,000

$25,000

$0

2. In 2021, Keith rode in a vanpool to work. Keiths employer paid Keith $5,000 for Keith's participation in the vanpool. The vanpool was a qualified transportation fringe benefit provided by Keiths employer.

How much of the $5,000 does Keith include in his taxable income for 2021 Federal Income Tax?

Group of answer choices

$0

$270

$1,760

$5,000

3. Ryan works for Target. Target offers its employees a discount on merchandise that its employees buys from Target. Ryan bought a television from Target for $1,000. Normally, Target sells the same television to its customers for $2,000. The cost of the television for Target was $1,400.

How much does Ryan have to include in his taxable income for Federal Income Taxes, from the purchase of the television from Target?

Group of answer choices

$0

$400

$600

$1,400

4. In 2021, Jayden was an employee of Gray Corporation. Jayden attended College when she wasn't working. In 2021, Jayden spent $15,500 toward qualified education expenses. In 2021, Gray Corporation paid $15,500 to Jayden to reimburse Jayden for her education expenses. In 2021, how much of the $15,500 does Jayden include in her taxable income?

Group of answer choices

$0

$5,250

$10,250

$15,500

5. In 20X1, Lee was hurt in the course of his employment with Foster Farms. In 20X1, Lee was paid the following amounts from Foster Farms' worker's compensation insurance company:

$30,000 for a physical injury suffered by Lee $50,000 for replacement wages when Lee was unable to work $70,000 for physical pain suffered by Lee

How much of the above does Lee include in his taxable income for 20X1?

Group of answer choices

$0

$30,000

$50,000

$150,000

6. Jill is in the 24% Federal Marginal Tax rate. In 20X1, Jill bought $10,000 in State of California Municipal bonds, and earned $250 in interest from those Municipal bonds. How much money does Jill earn from the $250 in interest from the Municipal bonds after she pays Federal Income Tax on the $250 in interest?

Group of answer choices

$190

$0

$250

$10,000

7. Adam is a minister of the gospel. He is paid the following amounts by his church, for being the minister of his church:

$50,000 Salary $30,000 Rental Allowance $15,000 Food Allowance

How much does Adam include in his taxable income?

Group of answer choices

$0

$50,000

$65,000

$95,000

8. In 20X1, Sanjay borrowed $100,000 from his sister. In 20X3, Sanjay told his sister he could not repay the loan. Sanjays sister forgave Sanjay all $100,000 of the loan. In 20X3, how much does Sanjay include in his taxable income from the forgiveness of debt by his sister?

Group of answer choices

$100,000

$50,000

$25,000

$0

9. In 20X1, Juan is a student at UC Berkeley. Juan received the following from UC Berkeley in 20X1:

$30,000 scholarship for Tuition $10,000 scholarship for Books and Fees $20,000 for working as a teaching assistant $20,000 for room and board

How much of the above must Juan include in his taxable income for 20X1?

Group of answer choices

$0

$20,000

$40,000

$50,000

10. Hansen bought his primary residence on 1/1/2010 for $400,000. He put $50,000 of his own money as the downpayment, and borrowed $350,000 from a bank for the remainder of the purchase price. On 1/1/2021, he was laid off from his job, and he could not make his mortgage payments. On 3/30/2021, the bank foreclosed on the house, and took the house back from Hansen. On 3/30/2021, the house was worth $150,000, and he owed $300,000 to the bank. The bank sold the house for $150,000 which the bank used to pay off half of the $300,000 that Hansen owed. The bank forgave the remaining $150,000 that Hansen owed the bank, pursuant to the foreclosure.

In 2021, how much taxable income does Hansen recognize from the bank forgiving the home loan to Hansen?

Group of answer choices

$0

$150,000

$300,000

$400,000

11. Diamelle purchased a life insurance policy on her life, and named Eric, her husband, as the beneficiary. Diamelle paid $50,000 for the life insurance policy. Upon Diamelles death, the life insurance policy would pay $2,000,000 to Eric. On 6/30/20X1, Diamelle died. On 8/30/20X1, the insurance company paid Eric $2,000,000 pursuant to the life insurance policy.

How much of the insurance policy payment does Eric include in his taxable income in 20X1?

Group of answer choices

$0

$50,000

$1,950,000

$2,000,000

12. On 3/30/20X1, Rynn received a gift of $1,000,000 in cash from her father Matthew. How much taxable income from the $1,000,000 gift does Rynn include in her Federal taxable income in 20X1?

Group of answer choices

$0

$250,000

$500,000

$1,000,000

13. Devon was involved in a vehicle accident. Devon sued Dianne, the other driver. Dianne was found to be 100% at fault. Dianne paid Devon the following amounts pursuant to the lawsuit:

$30,000 for physical injuries that Devon sustained in the accident.

$40,000 for medical care for Devon

$60,000 for punitive damages

$30,000 to replace Devons car. Devons basis in her car at the time of the accident was $30,000

How much of the above does Devon include in her taxable income?

Group of answer choices

$0

$30,000

$60,000

$130,000

14. In 20X1, Juan purchased medical insurance for himself, his wife Juanita, and his son Miguel, through his employer. The medical policy costed $15,000. Juan paid $1,000 toward the medical insurance premium, and his employer paid $14,000 toward the medical insurance premium. How much of the $14,000 that was paid by Juans employer is included in Juans taxable income for 20X1?

Group of answer choices

$0

$1,000

$14,000

$15,000

15. In 2021, Pauls primary residence was destroyed in a fire, in a federally declared disaster area. In 2021, after his house was destroyed, Paul had to live in a motel for 7 months. In 2021, Pauls insurance company paid Paul $200,000 to cover the cost of the motel and his other living expenses. How much of the $200,000 that was received by Paul is included in Paulss taxable income for 2021?

Group of answer choices

$0

$50,000

$100,000

$200,000

16. Eva's employer provided child care services at the worksite to the employees. In 2021, Eva took advantage of the benefit, and received child care services valued at $12,000 from her employer. Eva paid $0 for those child care services. In 2021, how much of the $12,000 benefit does Eva include in her Federal taxable income?

Group of answer choices

$0

$1,500

$10,500

$12,000

17. Jemma is employed by United Parcel Service. United Parcel Service reimburses adoption expenses incurred by their employees. In 2021, Jemmas Adjusted Gross Income is $100,000. In 2021, United Parcel Service reimbursed Jemma $15,000 for adoption expenses incurred by Jemma. How much of the $15,000 reimbursement is includable in Jemmas 2021 Federal taxable income?

Group of answer choices

$0

$560

$14,440

$15,550

18. Aliyah received $500 in interest from U.S. government bonds, and $1,000 of interest from State of California municipal bonds. Aliyah is a California resident. How much of the interest that she received is taxable income for Federal Income Tax and California Income Tax?

Group of answer choices

$500 taxable for Federal Income Tax, and $500 taxable for California Income Tax.

$1,500 taxable for Federal Income Tax, and $1,500 taxable for California Income Tax.

$500 taxable for Federal income Tax, and $0 taxable for California Income Tax.

$0 taxable for both Federal Income Tax, and $0 taxable for California Income Tax.

19. In 20X1, Yvonne received $5,000 in qualified transportation fringe benefits from her employer. How much of the $5,000 is included in her taxable income on her California Income Tax Return?

Group of answer choices

$0

$1,760

$3,240

$5,000