24) Ms. Marple's books and records for 2021 reflect the following information: 24) $65,000 Salary earned this year Interest on savings account (credited to her account in 2021, withdrawn in 2022) Tnterest on county bond earned and collected in 2021 1,000 2,000 What is the amount Ms. Marple should include in her gross income in 2021? A) $65,000 B) $68,000 C) $66,000 D) $67,000 25) 25) Amy's employer provides her with several fringe benefits. Which of the following are included in her taxable income? A) year-end bonus check B) employer's contribution to retirement plan on Amy's bchall C) group term life insurance premium paid by employer for $40,000 coverage for Amy D) employee discount 26) 26) Ilomer Corporation's office building was destroyed by fire. Homer collected insurance of $250,000, which equaled the building's basis, and $150,000 for profits least during the time the company was rebuilding the office building. What is the amount taxable this year? A) $250,000 B) $150,000 C) $0 D) $400,000 27) 27) In December of this year, Jake and Stockard, a married couple, redeemed qualified Series EE U.S. Savings Bonds. The proceeds were used to help pay for their daughter's college tuition. Jake and Stockard received proceeds of $8,000 representing principal of $5,000 and interest of $3,000. The qualified higher educational expenses they paid this year totaled $6,000. Their AGI is below the threshold for phase-out of the exclusion. What is the amount of interesl income Jake and Stockard can exclude from their income this year? B) $5,000 () $3,000 D) $2,250 A) $2,500 28) 28) Which of the following criteria not required to be mel under the tax concept of income? A) Income must be realized. B) Cash must be received. There must be economic benefit D) Income must be recognized. 29) 29) Which of the following item(s) must be included in the income of the respective employees? A) ABC I ospital Curporation provides free meals in the hospital cafeteria to employees while on duty in order that they be available for emergency calls. B) A hotel requires its hotel manager to live in a suite without charge in order to be on call Outside her normal work hours. The state of California highway patrol organization provides its officers with a daily meal allowance to compensate them for meals eaten at any location while they are on duty. D) (BX Corporation requires its employees to work overtime three evenings each year when the company takes inventory. The corporation pays to provide catered dinners on its premises on these evenings. 30) 30) Bret carries a $200,000 insurance policy on his life and has paid premiums of $10,000 over the years. Dividends on the policy have totaled $8,500. Each year Bret has left the dividends with the insurance company. In the current year, the insurance company credited $600 of interest on the accumulated dividends to Bret's account. In addition, $600 of dividends was added by the insurance company. In the current year, Bret must report income of A) $1,400. B) $800. C) SO. D) $600
