1:) Louis files as a single taxpayer. In April of this year he received a $1,500 refund of state income taxes that he paid last year. How much of the refund, if any, must Louis include in gross income under the following independent scenarios? Assume the standard deduction last year was $12,200. (Leave no answer blank. Enter zero if applicable.)

A:) Last year Louis claimed itemized deductions of $12,680. Louiss itemized deductions included state income taxes paid of $2,745 and no other state or local taxes. Refund to be included:

B:) Last year Louis had itemized deductions of $10,060 and he chose to claim the standard deduction. Louiss itemized deductions included state income taxes paid of $2,745 and no other state or local taxes. Refund to be included:

C:) Last year Louis claimed itemized deductions of $13,710. Louiss itemized deductions included state income taxes paid of $3,965 and no other state or local taxes. Refund to be included:

2:) For the following independent cases, determine whether economic income is present and, if so, whether it must be included in gross income (i.e., is it realized and recognized for tax purposes?). (Leave no answers blank. Enter zero if applicable.)

A:) Asia owns stock that is listed on the New York Stock Exchange, and this year the stock increased in value by $19,250. Economic Income Amount included in Gross Income

B:) Ben sold stock for $14,500 and paid a sales commission of $290. Ben purchased the stock several years ago for $5,800. Economic Income Amount included in Gross Income

C:) Bessie is a partner in SULU Enterprises LLC. This year SULU reported that Bessies share of rental income was $4,050 and her share of municipal interest was $1,200. Economic Income Amount included in Gross Income

3:) Although Hank is retired, he is an excellent handyman and often works part time on small projects for neighbors and friends. Last week his neighbor, Mike, offered to pay Hank $650 for minor repairs to his house. Hank completed the repairs in December of this year. Hank uses the cash method of accounting and is a calendar-year taxpayer. Compute Hanks gross income for this year from each of the following alternative transactions:

A:) Mike paid Hank $250 in cash in December of this year and promised to pay the remaining $400 with interest in three months. Gross Income:

B:) b. Mike gave Hank tickets in December to the big game in January. The tickets have a face value of $50, but Hank could sell them for $550. Hank went to the game with his son. Gross Income:

C:) Mike bought Hank a new set of snow tires. The tires typically sell for $650, but Mike bought them on sale for $585. Gross Income:

4:) L. A. and Paula file as married taxpayers. In August of this year, they received a $6,560 refund of state income taxes that they paid last year. How much of the refund, if any, must L. A. and Paula include in gross income under the following independent scenarios? Assume the standard deduction last year was $24,400. (Leave no answer blank. Enter zero if applicable.)

A:) Last year L. A. and Paula had itemized deductions of $20,100, and they chose to claim the standard deduction. Refund to be included:

B:) Last year L. A. and Paula claimed itemized deductions of $30,750. Their itemized deductions included state income taxes paid of $8,960 and no other state or local taxes. Refund to be included:

C:) Last year L. A. and Paula claimed itemized deductions of $29,400. Their itemized deductions included state income taxes paid of $10,900, which were limited to $10,000 due to the cap on state and local tax deductions. Refund to be included:

5:) Cammie received 100 NQOs (each option provides a right to purchase 10 shares of MNL stock for $10 per share). She started working for MNL Corporation four years ago (5/1/Y1) when MNLs stock price was $8 per share. Now (8/15/Y5) that MNLs stock price is $40 per share, she intends to exercise all of her options. After acquiring the 1,000 MNL shares with her stock options, she held the shares for over one year and sold (on 10/1/Y6) them at $60 per share. (Leave no answer blank. Enter zero if applicable. Input all amounts as positive values.) A:) What are Cammies taxes due on the grant date (5/1/Y1), exercise date (8/15/Y5), and sale date (10/1/Y6), assuming her ordinary marginal rate is 32 percent and her long-term capital gains rate is 15 percent? Tax on grant date Tax on exercise date Tax on sale date

6:) George bought the following amounts of Stock A over the years: (Loss amounts should be indicated with a minus sign.) Date Purchased Number of Shares Adjusted Basis Stock A 11/21/1994 1,070 $25,680 Stock A 3/18/2000 535 9,630 Stock A 5/22/2009 820 29,520

On October 12, 2020, he sold 1,305 of his shares of Stock A for $38 per share. A:) How much gain/loss will George have to recognize if he uses the FIFO method of accounting for the shares sold? Gain or loss to be recognized:

B:) How much gain/loss will George have to recognize if he specifically identifies the shares to be sold by telling his broker to sell all 820 shares from the 5/22/2009 purchase and 485 shares from the 11/21/1994 purchase? Gain or loss to be recognized:

7:) For each of the following independent situations, indicate the amount the taxpayer must include in gross income: (Leave no answer blank. Enter zero if applicable.) A:) Phil won $925 in the scratch-off state lottery. There is no state income tax. Amount to be included:

B:) Ted won a compact car worth $25,700 in a TV game show. Ted plans to sell the car next year. Amount to be included:

C:) Al Bore won the Nobel Peace Prize of $555,000 this year. Rather than take the prize, Al designated that the entire award should go to Weatherhead Charity, a tax-exempt organization. Amount to be included:

D:) Jerry was awarded $3,900 from his employer, Acme Toons, when he was selected most handsome employee for Valentines Day this year. Amount to be included:

E:) Ellen won a $1,810 cash prize in a school essay contest. The school is a tax-exempt entity, and Ellen plans to use the funds to pay for her college education. Amount to be included:

F:) Gene won $780 in the office March Madness pool. Amount to be included:

8:) 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 $9,200 scholarship to attend State Law School. The scholarship pays Steve's tuition and fees. Amount to be included:

B:) Hal was awarded a $19,400 scholarship to attend State Hotel School. All scholarship students must work 40 hours per week at the School residency during the term. Amount to be included:

9:) Cecil cashed in a Series EE savings bond with a redemption value of $16,000 and an original cost of $11,200. For each of the following independent scenarios, calculate the amount of interest Cecil will include in his gross income assuming he files as a single taxpayer: (Leave no answer blank. Enter zero if applicable.) A:) Cecil plans to spend all of the proceeds to pay his sons tuition at State University. Cecils son is a full-time student, and Cecil claims his son as a dependent. Cecil estimates his modified adjusted gross income at $61,700. Amount of interest to be included in gross income

B:) Assume the same facts in part (a), except Cecil plans to spend $4,800 of the proceeds to pay his sons tuition at State University, and Cecil estimates his modified adjusted gross income at $57,500. Amount of interest to be included in gross income

10:) Grady is a member of a large family and received the following payments this year. For each payment, determine whether the payment constitutes realized income and determine the amount of each payment Grady must include in his gross income. (Leave no answer blank. Enter zero if applicable.) A:) A gift of $23,800 from Gradys grandfather. Is this payment realized income? Amount to be included

B:) One thousand shares of GM stock worth $196 per share inherited from Gradys uncle. The uncle purchased the shares for $44 each, and the shares are worth $201 at year-end. Is this payment realized income? Amount to be included

C:) A gift of $69,000 of Ford Motor Bonds. Grady received the bonds on October 31, and he received $2,070 of semiannual interest from the bonds on December 31. Is this payment realized income? Amount to be included

D:) A loan of $5,950 for school expenses from Gradys aunt. Is this payment realized income? Amount to be included

11:) Terry was ill for three months and missed work during this period. During his illness, Terry received $6,350 in sick pay from a disability insurance policy. What amounts are included in Terrys gross income under the following independent circumstances? (Leave no answer blank. Enter zero if applicable.) A:) Terry has disability insurance provided by his employer as a nontaxable fringe benefit. Terrys employer paid $4,490 in disability premiums for Terry this year. Amount included in Gross Income:

B:) Terry paid $4,490 in premiums for his disability insurance this year. Amount included in Gross Income:

C:) Terrys employer paid the $4,490 in premiums for Terry, but Terry elected to have his employer include the $4,490 as compensation on Terrys W-2. Amount included in Gross Income:

D:) Terry has disability insurance whose cost is shared with his employer. Terrys employer paid $3,600 in disability premiums for Terry this year as a nontaxable fringe benefit, and Terry paid the remaining $890 of premiums from his after-tax salary. (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) Amount included in Gross Income: