1. Winnie is deciding between investing $100,000 in a state government bond that pays 6% interest compounded annually or a corporate bond that pays 7% interest compounded annually. Winnie will be in the 24% marginal tax bracket in 2019 (assume the bond interest will not push her into a higher marginal tax bracket).

What will Winnies 2019 after-tax return be if she invests in the state government bond on January 1, 2019 and holds the bond for all of 2019? To calculate after-tax return, use the interest on the bond less the federal income tax that Winnie will have to pay on such interest. Only consider federal income tax.

2. Same facts as previous question. What will Winnies 2019 after-tax return be if she invests in the corporate bond on January 1, 2019 and holds the bond for all of 2019? Only consider federal income tax.

3. Ashley had $10,000 in credit card debt. She negotiated a settlement with the credit card company. Ashley paid $4,000 of the credit card debt, and the credit card company agreed to cancel $6,000 of the debt.

If Ashley has total assets of $27,000 and total liabilities of $25,000 immediately before the debt was cancelled, what amount of gross income does Ashley have as a result of the credit card company cancelling $6,000 of her debt?

4. Ashley had $10,000 in credit card debt. She negotiated a settlement with the credit card company. Ashley paid $4,000 of the credit card debt, and the credit card company agreed to cancel $6,000 of the debt.

If Ashley had total assets of $15,000 and total liabilities of $16,000 immediately before the debt was cancelled, what amount of gross income does Ashley have as a result of the credit card company cancelling $6,000 of her debt?

5. Ashley had $10,000 in credit card debt. She negotiated a settlement with the credit card company. Ashley paid $4,000 of the credit card debt, and the credit card company agreed to cancel $6,000 of the debt.

If Ashley has total assets of $25,000 and total liabilities of $50,000 immediately before the debt was cancelled, what amount of gross income does Ashley have as a result of the credit card company cancelling $6,000 of her debt?

6. In 2018, Bobs mother gave Bob a used car for his birthday. Bobs mother purchased the car in 2012 for $35,000. On the date of the gift, the car had a FMV of $20,000. What is Bobs gross income from the receipt of the car?

7. Walt received the following in 2019:

$45,000 salary

$5,000 gain on the sale of a state bond sold in 2019

$1,000 interest on savings account

$1,000 interest on state government bond

$2,000 interest on federal government bond

$3,000 qualified dividends

$100,000 life insurance proceeds. Walt was named as the beneficiary on his father's life insurance policy, and Walt's father passed away in 2019.

What is Walt's gross income for 2019?