72. Alex Burg, a cash basis taxpayer, earned an annual salary of $80,000 at Ace Corp. in 2021, but elected to take only $50,000. Ace, which was financially able to pay Burg's full salary, credited the unpaid balance of $30,000 to Burg's account on the corporate books in 2021, and actually paid this $30,000 to Burg on April 25, 2022. How much of the salary is taxable to Burg in 20217 a. $50,000 b. $60,000 c. $65,000 d. $80,000 73. Which of the following is considered a nonbusiness bad debt? a. Tom, a CPA, made personal loans to several friends who were not his clients. Three of the loans became totally worthless. b. Mary obtained a court-order for her former husband, Bill, to pay child support. Bill did not pay the child support. c. Kirby guaranteed a loan as a gesture of friendship for Sue. Sue defaulted and Kirby paid off the loan. d. None of the above. 74. Thomas Thinne, a cash basis taxpayer, may either defer reporting the interest in Series E bonds until he cashes the bonds or he may choose to report the increase in redemption value as interest each year. True False 75. Max Miller, the owner of a boutique, has a valuable employee for whom he pays a $200 annual premium for a $50,000 life insurance policy. The employee's husband is the beneficiary. This benefit when added to her salary does not make the total compensation unreasonable. Max may deduct the premium as a business expense. True False 76. Social Security benefits are always included in gross income. True False 77. Amounts received under worker's compensation as compensation for personal injuries are excludable from gross income. True False 78. Wade Woods is an employee of a meat packing plant that allows him to purchase goods at a discount that exceeds the gross profit percentage of the price at which the goods are offered to regular customers. Wade must include the portion of the discounts that exceeds the gross profit percentage in his income. True False