5 1.25 points Skipped Problem 5-52 (LO 5-2) (Algo) Larry purchased an annuity from an insurance company that promises to pay him $4,500 per month for the rest of his life. Larry paid $433,620 for the annuity. Larry is in good health and is 72 years old. Larry received the first annuity payment of $4,500 this month. Use the expected number of payments in Exhibit 5-1 for this problem. Required: a. How much of the first payment should Larry include in gross income? b. If Larry lives more than 15 years after starting the annuity, how much of each additional payment should he include in gross income? eBook Hint Print c. What are the tax consequences if Larry dies just after he receives the 100th payment? References Complete this question by entering your answers in the tabs below. Required A Required B Required c How much of the first payment should Larry include in gross income? Amount to be included in gross income < Required A Required B > 6 2 points Skipped Problem 5-55 (LO 5-2) (Algo) For each of the following independent situations, indicate the amount the taxpayer must include in gross income: Note: Leave no answer blank. Enter zero if applicable. Required: a. Phil won $750 in the scratch-off state lottery. There is no state income tax. eBook Print References b. Ted won a compact car worth $19,600 in a TV game show. Ted plans to sell the car next year. c. Al Bore won the Nobel Peace Prize of $512,500 this year. Rather than take the prize, Al designated that the entire award should go to Weatherhead Charity, a tax-exempt organization. d. Jerry was awarded $5,600 from his employer, Acme Toons, when he was selected most handsome employee for Valentine's Day this year. e. Ellen won a $1,260 cash prize in a school essay contest. The school is a tax-exempt entity, and Ellen plans to use the funds for her college education. f. Gene won $525 in the office March Madness pool. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E Required F Al Bore won the Nobel Peace Prize of $512,500 this year. Rather than take the prize, Al designated that the entire award should go to Weatherhead Charity, a tax-exempt organization. Amount to be included in gross income < Required B Required D > 7 2 points Skipped Problem 5-56 (LO 5-2) (Algo) Grady received $9,160 of Social Security benefits this year. Grady also reported salary and interest income this year. What amount of the benefits must Grady include in his gross income under the following five independent situations? Note: Leave no answer blank. Enter zero if applicable. Required: a. Grady files single and reports salary of $14,500 and interest income of $490. eBook b. Grady files single and reports salary of $24,640 and interest income of $840. Print c. Grady files married joint and reports salary of $79,800 and interest income of $740. References d. Grady files married joint and reports salary of $44,000 and interest income of $940. e. Grady files married separate and reports salary of $24,640 and interest income of $840. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E Grady files married separate and reports salary of $24,640 and interest income of $840. Amount to be included in gross income < Required D Required E > 9 2 points Skipped eBook Print References Problem 5-69 (LO 5-3) (Algo) What amounts are included in gross income for the following taxpayers? Note: Leave no answers blank. Enter zero if applicable. Required: a. Janus sued Tiny Toys for personal injuries from swallowing a toy. Janus was paid $38,000 for medical costs and $290,000 for punitive damages. b. Carl was injured in a car accident. Carl's insurance paid him $51,600 to reimburse his medical expenses and an additional $25,800 for the emotional distress Carl suffered as a result of the accident. c. Ajax published a story about Pete, and as a result Pete sued Ajax for damage to his reputation. Ajax lost in court and paid Pete an award of $24,000. d. Bevis was laid off from his job last month. This month he drew $1,120 in unemployment benefits. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Janus sued Tiny Toys for personal injuries from swallowing a toy. Janus was paid $38,000 for medical costs and $290,000 for punitive damages. Amount included in Gross Income Required A Required B > 1.25 10 points eBook This year, Leron and Sheena sold their home for $791,000 after all selling costs. Under the following scenarios, how much taxable gain does the home sale generate for Leron and Sheena? Assume that the couple is married filing jointly. Note: Leave no answer blank. Enter zero if applicable. Required: a. Leron and Sheena bought the home three years ago for $140,000 and lived in the home until it sold. b. Leron and Sheena bought the home one year ago for $525,000 and lived in the home until it sold. Print References c. Leron and Sheena bought the home five years ago for $322,000. They lived in the home for three years until they decided to buy a smaller home. Their home has been vacant for the past two years. Complete this question by entering your answers in the tabs below. Required A Required B Required C Leron and Sheena bought the home three years ago for $140,000 and lived in the home until it sold. Taxable gain $ 651,000 < Required A Required B >