3. During 2019, Marvin had the following transactions:

Salary $50,000

Bank loan (proceeds used to buy personal auto) 10,000

Alimony paid (divorce was finalized in 2010). 12,000

Child support paid 6,000

Gift from aunt 20,000

Marvins AGI is:

a. $32,000.

b. $38,000.

c. $44,000.

d. $56,000.

e. $64,000

4.The realization requirement gives an incentive to own assets that have increased in value and to

sell assets whose value has decreased.

a. True

b. False