1.Unknown to the Beans, Mona had carried an insurance policy on her life (death benefit of $70,000) naming Jennifer as the beneficiary. When Jennifer found out about the policy, she filed a claim (in September, 2017). In November 2017, she received a check in the amount of $70,350 from Eagle Life Insurance Company located at 1000 Windy Rd., Chicago, IL 62650 (Federal ID#23-1234567). The $350 amount in excess of the death benefit was for interest that was earned as a result of the delayed payment.

2.On July 6, 2017, Jennifer sold her stamp collection for $15,400. The collection was given to her by her father (Michael Tipton on March 10, 2008 as a birthday present. At the time, her father told her the collection was worth $7,000 but gave her receipts that showed his basis in the stamp collection to be $3,000. Michael died on April 10, 2009. No Form 1099-B was received for this transaction.

3.On October 25, 2017, Daniel sold 1,000 shares of ComputersRUs stock for $1,800. He had purchased these shares on November 15, 2016 for $19,300. His investment was motivated by a hot tip from his broker that the company was to be bought by IBM, but after the negotiations failed, the stock price quickly dropped and Daniel decided to sell before the stock price dropped further. A Form 1099-B was received showing both the sales price and the cost basis.

4.Daniel also sold his 2010 BassTracker fishing boat on September 12, 2017 for $4,500. Daniel had purchased the boat on May 1, 2010 for $13,300.

5.In March, 2017, Jennifer was selected for jury duty for a state criminal case. She appeared on 3 separate days during jury selection, but ultimately was not selected for the jury. She was paid $125 by the court for the three days while awaiting jury selection.

6.While jogging in July, Daniel was accidently struck by a delivery van and injured. After being hospitalized for 3 days, he was released very bruised but with no permanent impairment. The driver of the van was arrested and ticketed by police for reckless operation of a vehicle and was later prosecuted for drug use. To avoid any adverse publicity of a lawsuit, the owner of the delivery service paid Daniels medical expenses of $5,000 directly to the hospital and sent him a $50,000 check on September 1, 2017. The check stated that $50,000 is a settlement in full for physical injuries sustained. Daniel accepted the settlement and cashed the check. He incurred no legal expenses relating to this settlement.

7.Besides what has already been noted, the Beans had the following receipts for 2017:

Interest income from Hunt, WV municipal bonds 3,100

Interest income from First State Bank CDs 2,700

Winnings from a lottery ticket purchased from a

local convenience store 1,100

Interest income from Ace Mutual Money Market fund 1,500

Interest income from Federal Treasury Bonds 800

Dividends received on ComputersRUs Stock 200

Qualified Dividends received on Home Depot Stock 2,350

State of WV 2016 tax refund 440

2016 Federal income tax refund 780

The Beans itemized their 2016 deductions and claimed an $8,500 deduction in WV state income tax that was withheld and paid in 2016.

In each case given above explain the tax treatment