11. Barney and Betty got divorced this year. In the divorce decree Betty agreed to transfer 100 shares of common stock worth $50,000 and pay Bamey $24,000 per year for five years (or until Barney's death of remarriage). What amount (if any) is included in Barney's gross income this year? A. $24,000 B. $50,000 C. $74,000 D. $170,000 E. None of the payments are included in gross income 12. Hal Gore won a $1 million prize for special contributions to environmental research. This prize is awarded for public achievement and Hal immediately indicated that he would transfer $400,000 of the award to the Environmental Protection Agency. How much of the prize should Hal include in his gross income? A. $400,000 B. $600,000 C. $1 million D. None of the above because all prizes are excludible E. None of the above because prizes from charities are excludible 13. Bernie is a former executive who is retired. This year Bernie received $250,000 in pension payments and $10,000 of social security payments. What amount must Bemie include in his gross income? A. $250,000 B. $255,000 C. $258,500 D. $260,000 E. Zero 14. Bart, a single taxpayer, has recently retired. This year, he received $24,000 in pension payments and $5,000 of social security payments. What amount must Bart include in his gross income for the social security payments? A. $4,250. B. $2,500 C. $1,500. D. $750. E. Zero. 15. Joyce's employer loaned her $50,000 this year interest-free) to buy a new car. If the federal interest rate was 3%, which of the following is correct? A. Joyce recognizes $1,500 of taxable interest income. B. Joyce's employer recognizes $1,500 of deductible interest expense. C. Joyce recognizes $1,500 of imputed compensation income. D. Joyce recognizes $1,500 of imputed dividend income. E. None of these. 16. Deb has found it very difficult to repay her loans. Because of these difficulties, the bank decided to forgive one of her most recent loans, an amount of $45,000. After the loan was discharged, Deb had total assets of $232,000 and her remaining loans total $217,000. What amount must Deb include in her gross income? A. $15,000. B. $45,000 C. $30,000. D. $28,000. E. Zero - Deb was not solvent when the loan was discharged