4) J.Z. (single taxpayer) is retired and received $10,000 of Social Security benefits this year. How much of the $10,000 Social Security benefits is taxable if his only other income was $28,000 of pension income?

5) This year Ann has the following stock transactions. What amount is included in her gross income if Ann paid a $200 selling commission for each sale?

Shares Firm Total Purchase price Sales price Value at year end

100 IBM $ 5,000 $7,000

200 ATT 7,500 $ 9,500

500 Dell 12,500 13,000