15. Jack and Jill get divorced and Jack moves into the basement. The divorce decree specifies that Jack must pay Jill $1,000 per month, for 8 years. True or False: Jill must include the alimony payment in her gross income. 16. Jack and Jill get divorced. The divorce decree specifies that Jack must pay Jill $1.000 per month, until their child reaches the age 21, at which point the payments will be reduced to $400/month. Jill's gross income attributable to alimony is: $ 17. Amy spent $1,000 to install a vegetable garden on her deck. The cost of the vegetables in a store would have been $3,000 for the year. Amy should include Sin her gross income? For questions 18 and 19, assume the following facts. Larry is a cash method, calendar year taxpayer. In December 2017, Larry performed services for David and received a $3,000 check as payment 18. David asks Larry to deposit the check in January 2018 and Larry agrees True or False: David must recognize the income in 2017 19. David asks Larry to deposit the check in January 2018 because David does not have the funds to pay, and Larry agrees. True or False: David must recognize the income in 2017. 20. Kazuo Ishiguro lives in New York and won the 2017 Nobel Prize in Literature. On learning that he has been awarded the prize, Mr. Ishiguro says: "I do not need the money Give it to the Society of Children's Book Writers." The Society of Children's Book Writers is a non-profit organization based in New York. To lower his tax liability, you recommend that Mr. Ishiguro: Include the prize in his gross income but deduct the amount donated. Exclude the prize from his gross income. Mr. Ishiguro does not need to recognize this income as he is not a United States citizen. Under the Internal Revenue Code, all prizes and awards are excluded from gross income. a. b. e. d. 21. John's employer provided him with a car, "in recognition of his hard work on a project. The fair market value of the car is: a. Included in John's gross income. b. Included in John's gross income, but eligible for a deduction as a work related expense c Excluded from John's gross income as a gift. d. Excluded because John needed the car to successfully perform his job duties