2:27 6. Paige received free parking in the company's security garage that would normally cost $200 per month. 7. Paige manages the safety program for ASCI. In recognition of her superior handling of three potential crises during the year, Paige was awarded the Employee Safety Award on December 15. The cash award was $500. 8. On January 15, 2021, Paige's father died. From her father's estate, she received stock valued at $30,000 (his basis was $12,000) and her father's house valued at $90,000 (his basis in the house was $55,000). 9. Paige owns several other investments and in February 2022 received a statement from her brokerage firm reporting the interest and dividends earned on the investments for 2021: EXHIBIT A This is important tax information and is being furnished to the Internal Revenue Service. 1099-DIV - Dividends and Distributions Entity Description Amount General Dynamics Ordinary/qualified dividends $300 1099-INT Interest Entity Description Amount New Jersey Economic Development (bonds) Interest $300 700 700 IBM Interest State of Nebraska (bonds) Interest 1098 - Mortgage Interest Statement Entity Description Amount Sunbelt Credit Union Mortgage interest S7,100 Northeast Bank Mortgage interest 435 Entity Description Amount $2,000 Form K-1 (preliminary) Grubstake Mining & Development Corp. Ordinary income Distribution 1,000 10. Paige owns 1,000 shares of Grubstake Mining & Development common stock. Grubstake is organized as an S corporation and has 100,000 shares outstanding (S corp. ID number 45-4567890). Grubstake reported taxable income of $200,000 and paid a distribution of $1.00 per share during the current year. Paige tells you that Grubstake typically does not send out its K-1 reports until late April. However, its preliminary report (see Exhibit A) has been consistent with the K-1 for many years. Paige does not materially participate in Grubstake's activities. 11. Paige slipped on a wet spot in front of a computer store last July. She broke her ankle and was unable to work for two weeks. She incurred $1,300 in medical costs, all of which were paid by the owner of the store. The store also gave her $1,000 for pain and suffering resulting from the injury. ASCI continued to pay her salary during the two weeks she missed because of the accident and also paid her $1,200 in disability pay for the time she was unable to work. Under its plan, ASCI pays the premiums for the disability insurance as a nontaxable fringe benefit. 12. Paige received a Form 1099-B from her broker for the sale of the following securities during 2021. The basis amounts were reported to the IRS. Security Nebraska state bonds Sales Date Purchase Date Sales Price Basis 3/14/2021 10/22/2015 $2,300 $1,89034 2/19/2019 $8,500 $9,760 Cassill Corp (500 shares) 10/20/2021 -prod-fleet02-xythos.content.blackboardcdn.com 63