Question
1- Trish had the following transactions during 2010: Salary $70,000 Interest income on bonds Issued by City of Newark $3,000 Issued by Chevron Corporation $2,000
1- Trish had the following transactions during 2010: Salary $70,000 Interest income on bonds Issued by City of Newark $3,000 Issued by Chevron Corporation $2,000 $5,000 Alimony received $4,000 Child support received $12,000 City and state income taxes paid $5,000 Bank loan obtained to pay for vacation $8,000 What is Trish's AGI for 2011?
2- George is employed by the Quality Appliance Company. All the full-time employees are allowed to purchase appliances at the company's cost plus 5%. The employee also is given, at no cost, a 1-year service contract on all the goods purchased from the company. George purchased a refrigerator for $420. The company's normal selling price for the refrigerator is $800. George also received a service contract, at no charge, that had a value of $120. During the year, George was required to have his refrigerator serviced once. The cost of the call would have been $50 if he had not had the service contract. Is George required to recognize any income from the purchase of the refrigerator and the receipt of the service contract?
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