1.In October of 2017 Bruce, a cash basis CPA, contracted to perform an audit for $2,000 and to prepare the corporate tax return for $1,000. The contract called for payment January 31 of 2018. The client called Bruce on December 31, 2017, and offered him $1,500. Bruce accepted and the client mailed him a check on December 31, 2017. What amount must Bruce include in his 2017 tax return?

$1,000

$0

$1,500

$3,000

2. Bobby is age 62, single, and claimed as a dependent by his daughter on her tax return. During the current year, Bobby received Social Security payments of $6,000, interest on a bank account of $3,500, and $2,300 from a part-time job. What is Bobbys taxable income?

$0

$550

$2,300

$3,150

3.Sally is 92 years old and single and claimed by her daughter as a dependent. During the tax year she received $1,900 in interest from her savings account, $1,500 in interest from State of New York general obligation bonds, and $8,000 distributions from a Roth IRA. What is her gross income?

$1,500

$1,900

$3,400

$11,400

4.George, age 21 is a full-time student at the University and is claimed as a dependent by his parents he had earned income of $2000 from a part-time job. In addition he had $950 interest from a savings account. He had total itemized deductions of $200 in the current year. What is Georges taxable income this year?

$600

$950

$2,000

$2,950