1.Which one of the following would not be included in gross income for federal tax purposes?

Frank won $2,000 on the game show Jeopardy

Grant stole $500 from his employers petty cash fund

Ben used $10,000 of his academic scholarship to pay his college tuition

Rockys employer gave him a watch worth $1,000 when he met his sales goal

2.Which one of the following is not true?

Alice must pay tax on the $500 increase in value of her Apple Corp stock

Ken, a mechanic, who agreed to repair Sarahs car in exchange for her doing legal for him will pay tax on the value of Sarahs legal services

The $1,000 Lisa used of her athletic scholarship to pay her sorority dues is included in her gross income

Anthony will pay tax on his $10,000 mortgage that his lender forgave

3.In which of the following would the gain on selling their personal residence would be taxable for federal income tax purposes?

Due to getting divorced, Jack and Madison sold their house 10 months after buying it

After living in her house for 15 months, Gina sold it to move to a nursing home

After living in her house for 1 year, Mary sold it.

After living in his house for 1 year, Sean sold it because he was starting a new job in another state.

4.Which one of the following would not be included in gross income for federal tax purposes?

Cory found $500 of gold coins while he was hiking

Mary received $100 of workers compensation after she was injured at work

Becky was paid $15 for jury duty which she was not required to give her employer

Ricky realized a $200 gain when he sold his Xerox stock

5.Which one of the following would be included in gross income for federal tax purposes?

As an employee of Air Canada, Ethel flew to the UK in an empty seat on the plane

Chris received $600 of unemployment compensation after he was laid off from his job

Exxon reimbursed Donna for her legal expenses she paid when she adopted her son

Audreys son is enrolled in her employers day care center located in her office building