1. Which of the following statements about alimony payments is false for divorce agreements executed before 2019? $55,000 d. 5. Scott received 1099-INT statements for all of the following interest receipts: Alimony payments are included in the income of the recipient. Alimony is deductible for AGI for the payer. Tesla, Inc bonds $2,420 City of Charlotte bonds $ 949 U.S. Treasury bonds $180 State of South Carolina bonds $300 What amount of interest income must Scott include in his taxable income? h. To qualify as alimony, payments may be made in cash or property. The payments cannot continue after the death of the recipient. $3,849 d. $1,249 b. $2,420 2. Angelina and Brad divorced in 2018. Pursuant to a written order, Angelina agreed to pay Brad $50,000 per year for 10 years or until Brad's death or remarriage) and $75,000 per year for their children, Shiloh, Vivianand Knox What amount is included in Brad's taxable income in 2020? $50,000 $2,600 d. $75,000 b. 6. Kathryn Janeway is the owner of Enterprise Consulting Services. Her income statement showed the following expenses: $125,000 c. d. $0 3. During 2019, Pam was under water in her house. The house was worth $125,000 but she still owed $200,000 on the mortgage. Because Pam had an FHA loan, the bank decided to forgive the remainder of the loan. Right after the loan was discharged, Pam had total assets of $100,000 and total liabilities of $80,000. How much of the $75,000 loan forgiveness must Pam include in her taxable income? Rent, $36,000 Salaries $14,000 General Expenses $5,000 Interest $1,200 Fines and penalties $1,000 The fines and penalties are due to a late filing of taxes. What total expenses will Enterprise Consulting Services show on its Schedule C? $56,200 $20,000 $75,000 b. $57,200 b. $55,000 $0 c. $125,000 d. $50,000 d. 4. During 2019, Pam was under water in her house. The house was worth $125,000 but she still owed $200,000 on the mortgage. Because Pam had an FHA Loan, the bank decided to forgive the remainder of the loan. Right after the loan was discharged, Pam had total assets of $80,000 and total liabilities of $100,000. How much of the $75,000 loan forgiveness must Pam include in her taxable income? $75,000 7. Tom has owned his house for 20 years, and he paid $400,000 for it. In 2016 he married Gisele and she moved into the house, which remained their main residence until 2019. In late 2019, Tom sold the house (Gisele was not added to the ownership records) and moved to Tampa. The house was sold for $1,100,000. Neither Tom nor Gisele excluded the sale of another house in the last two years. How much of the gain can be excluded for tax purposes? $400,000 $20,000 $0 b. $0 c. $700,000 c. d. $500,000 $39,452 $0 $65,000 c. 8. Tom and Gisele are married. In early 2017, Tom's company informed him that he was to be transferred to Tampa. Tom and Gisele purchased a house in anticipation of moving. The house cost them $350,000. Tom and Gisele never occupied the house, and it remained vacant. In late 2019, Tom's company informed him that he was to be transferred i immediately to to Dallas. Tom and Gisele sold the house for $500,000. How much of the gain can Tom and Gisele exclude from their 2019 taxes? $80,000 d. $500,000 $0, they fail the use test. $150,000 $250,000 d. 9. In February 2019, Dakota inherited stock from her father. The stock had a basis of $5,000 to her father, but the value was $9,000 when Dakota inherited it. In September of 2019, Dakota received a $949 dividend from the stock. What amount of income should Dakota report from the stock in 2019? $5,949 $949 $9,949 $9,000 10. Jennifer's father died during in February 2019. After his death, Jennifer received $1,000,000 from his life insurance, plus his stock portfolio valued at $500,000. The stock had an original basis of $300,000 to Jennifer's father. Jennifer received no interest or dividends on the stock portfolio during 2019. How much income does Jennifer need to report on her 2019 1040 from her interitance? $1,500,000 $1,000,000 $1,300,000 $0 11. Howard is a U.S. citizen and was transferred by his company to Florence, Italy early in mily2019. The assignment is for 2-3 years, and he intends to stay and work full time for the remainder of the assignment. During 2019, Howard earned $80,000 from the Italian company but only lived in Italy for 180 (out of 365) days. What amount of Howard's $B0,000 earned in Italy will he be allowed to exclude from his U.S. 1040 reported income