__29. Carin, a widow, elected to receive the proceeds of a $100,000 life insurance policy on the life of her deceased husbands in 10 annual installments of $11,000 each. Her husband had paid premiums of $30,000 on the policy. Over the life of the installment payments, Carin must include in her gross income:

a. $0

b. $10,000

c. $70,000

d. $100,000

e. $60,000

__30. Jeff owned a warehouse he used in his business that decreased in value by $40,000 during the year and on December 31, 2018, it was worth $170,000, but he did not sell the warehouse. The effect on Jeffs taxable income is:

a. capital loss equal to $40,000

b. ordinary loss equal to $20,000

c. deduction for AGI equal to $40,000

d. deduction from AGI equal to $20,000 subject to 10% of AGI floor

e. none of the above.

__33. Josh owns rental residential real estate. He asked his tenants to pay his son, Tom, the monthly rent. Tom has been a good son and needs money to fund his weekend parties. Neither Tom nor Josh paid any rental property related expenses in 2018. The rental payments for 2018 totaled $32,000, all paid to Tom. The federal income tax consequences of this transaction are:

a. include $32,000 in gross income of Josh, deduction for AGI equal to $32,000 for Josh, include $32,000 in gross income of Tom

b. include $32,000 in gross income of Tom

c. include $32,000 in gross income of Josh, exclude $32,000 from gross income of Tom

d. include $32,000 in gross income of Josh, deduction from AGI equal to $32,000 for Josh, include $32,000 in gross income of Tom

e. include $16,000 in gross income of Josh