43.Although Hank is retired, he is an excellent handyman and often works part time on small projects for neighbors and friends. Last week his neighbor, Mike, offered to pay Hank $500 for minor repairs to his house. Hank completed the repairs in December of this year. Hank uses the cash method of accounting and is a calendar-year taxpayer. Compute Hank's gross income for this year from each of the following alternative transactions: a) Mike paid Hank $200 in cash in December of this year and promised to pay the remaining $300 with interest in three months. b) Mike gave Hank tickets in December to the big game in January. The tickets have a face value of $50, but Hank could sell them for $400. Hank went to the game with his son. c) Mike bought Hank a new set of snow tires. The tires typically sell for $500, but Mike bought them on sale for $450. 2021 Tax Rate Schedules Individuals Schedule XSingle If taxable income is But not over: over: The tax is: $ 0 $ 9.950 10% of taxable income $ 9,950 $ 40,525 $995 plus 12% of the excess over $9.950 $ 40,525 $ 86,375 $4,664 plus 22% of the excess over $40.525 $ 86,375 $164,925 $14,751 plus 24% of the excess over $86,375 $164.925 $209,425 $33,603 plus 32% of the excess over $164,925 $209,425 $523,600 547,843 plus 35% of the excess over $209,425 $523,600 $157,804.25 plus 37% of the excess over $523,600 Schedule 7Head of Household If taxable income is But not over: over: The tax is: $ $ 14,200 10% of taxable income $ 14,200 $ 54,200 $1,420 plus 12% of the excess over $14,200 S 54,200 $ 86,350 $6,220 plus 22% of the excess over $54.200 $ 86,350 $164,900 $13,293 plus 24% of the excess over 586,350 $164,900 $209,400 $32,145 plus 32% of the excess over $164.900 $209,400 $523,600 $46,385 plus 35% of the excess over $209,400 $523,600 $156,355 plus 37% of the excess over S523,600 over: Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) If taxable income is But not over: over: The tax is: $0 $ 19,900 10% of taxable income $ 19,900 $ 81,050 $1,990 plus 12% of the excess over $19,900 $ 81,050 $172,750 $9,328 plus 22% of the excess over $81,050 $172,750 $329,850 $29,502 plus 24% of the excess over $172,750 $329,850 $418,850 $67,206 plus 32% of the excess over $329,850 $418,850 $628,300 $95,686 plus 35% of the excess over $418,850 $628,300 $ $168.993.50 plus 37% of the excess over $628,300 Schedule Y-2Married Filing Separately If taxable income is But not over: The tax is: $ 0 $ 9,950 10% of taxable income $ 9,950 $ 40,525 $995 plus 12% of the excess over $9.950 $ 40,525 $ 86,375 $4,664 plus 22% of the excess over $40.525 $ 86,375 $164,925 $14,751 plus 24% of the excess over $86,375 $164.925 $209,425 $33,603 plus 32% of the excess over $164.925 $209,425 $314,150 $47,843 plus 35% of the excess over $209,425 $314,150 $84,496.75 plus 37% of the excess over $314.150 Estates and Trusts If taxable income is over: $ 0 $ 2,650 But not over: $ 2,650 $ 9,550 The tax is: : 10% of taxable income $265 plus 24% of the excess over $2,650 $1,921 plus 35% of the excess over 59,550 $3,146 plus 37% of the excess over $13,050 $ 9.550 $13.050 $13,050