3.Alan purchased 300 shares of Berkshire Hathway Corporation stock for $36,000 and 2,000 shares of Facebook Corporation stock for $88,000 three years ago. On January 20, 2019, Alan received 150 shares of Berkshire as a result of stock dividends. On June 20, 2019, Alan sold 200 shares of Berkshire for $22,000. Alan also received 100 shares of Facebook Corporation stock as a result of a stock dividend on August 10, 2019. Alan sold 90 shares for $7,200 Alan did not have the option of receiving cash. (15 points) Compute: A) The cost per share of both companies after receiving the stock dividends. B) Compute the capital gains/loss that should be included in Alan's tax return for 2019. 4. Ahmed and Hana, a married couple, receive $35,000 in Social Security benefits in 2020. They also receive $75,000 in taxable retirement payments and $10,000 in municipal bond interest. (15 points) A) What is their gross income for 2020? B) What is their taxable income for 2020? 1. Identify the following with an E if all or part of the item could be an exclusion from gross income or D if all or part of the item could be a deduction. (10 points) a. Scholarship income taxes b. Medical expense exempt interest income c. Charitable contribution Student loan interest expense d. Life insurance proceeds Social Security benefits e. Inheritances Money received for physical injuries. f. State g. Tax j. h. i. MCQ - Part 2 (30 points) 1.Rema is married filing joint return with a taxable income of $83,000 in 2021. What is her marginal tax rate? A.10% B. 12% C. 22% D. 24% E. None of these answers. 2. If Ahmed paid $8,853.6 of social security and $2,218.50 of Medicare in 2021. What is Ahmed's salary for 2021? A. $107,500 B. $142,800 C. $153,000 D. $195,000 E. None of these answers 3. What is John's gross income if he has the following: $78,000 salary, gambling gain of $2,000, and $3,000 of municipal bond interest income. A.$83,000 B.$78,000 C.$77,000 D.$80,000 E.None of these answers. 4. A and B married filing a joint return. They received $35,000 interest income from their saving account, $8,500 dividends income, $10,800 in interest from municipal bonds, and $36,000 in Social security benefits for 2021. What is the portion of their social security benefits that is taxable? A.$28,050. B.$10,800. C.$32,000. D.$33,000. E.Some other amount-Answer 5.Huma, a single individual, received $35,000 of interest income from tax-exempt bonds, $10,000 interest from their mutual funds, and $18,000 in Social Security benefits in 2019. What is the taxable portion of Huma's social security benefits? A.$15,300. B. $12,750. C. $11,900. D. $18,000. E. none of these is correct. 6. Virginia received the following in 2021: Alimony (from a divorce decree finalized in 2018) $8,000; Child support $12,000; Interest income from corporate bonds $5,000; Dividend income $400. What is her gross income? A.$13,200 B.$13,250 C.$21,200 D.$21,450 E.None of these answers. 7. In 2019, Joe gave his son 4,000 shares of ABC stock valued at $10 per share. Two weeks after the gift, ABC declared a $1 9. Tasla Corporation loans $50,000 interest-free for one year to Alma, a shareholder. Alma uses the loan to pay for personal debts. Assume that the applicable federal rate is 4 percent. What are the tax consequences of this loan to Tasla and to Alma? A.No tax consequences to either Tasla or Alma B.No income to Alma, $2,000 deduction for Tasla C.$2,000 income to Alma, no income to Tasla D.$2,000 income to Alma and $2,000 deduction for Tasla E.$2,000 income to Alma and $2,000 income to Tasla 10. Kayla receives an $18,500 scholarship from the state university. The university specifies that $8,500 is for tuition and books, while $10,000 is for room and board. In addition, Kayla works part-time at the campus library and earns $5,000. How much is Kayla required to include in her gross income? A. zero B.$5,000 C.$15,000 D.$23,500 E. None of these answers