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8. For the current year, David has salary income of $90,000 and the following property Stock investment sales- Long-term capital gain Short-term capital loss $

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8. For the current year, David has salary income of $90,000 and the following property Stock investment sales- Long-term capital gain Short-term capital loss $ 9,000 (18,000) 3,000 Gain on sale of camper (purchased 4 years ago and used for family vacations) What is David's AGI for the current year? a. $90,000 b. $87,000. c. $84,000 d. $96,000. e. None of the above. ntonia, a CPA in training, is researching the definition of income, but has not been able to find a source. She comes to you for advice as to where she should focus her research. In 9. A which of the following sources will you advise her to research for the definition of income: a. United States Su United States Supreme Court Cases The Internal Revenue Code - which state that "except as otherwise provided gross income includes all income" The Treasury Regulations - which state, "Anything that increases one's wealth is ncome a. b. c. d. U.S. Constitution - which gives congress right to levy tax on income e. All of the above. 10. On October 31, 2016, Bob, a cash basis taxpayer, gave his son Dave common stock that paid a dividend every year. On November 15, 2016, the corporation declared the dividend payable on December 15, 2016, to shareholders of record as of November 22, 2016. The corporation has paid the $1,000 dividend once each year for the past ten years, during which Bob owned the stock. Dave collected the dividend on December 15, 2016. Assuming Bob and Dave are in the Tax Court's jurisdiction, who recognizes the dividend for tax purposes? a. Bob must include all of the dividend in his gross income. b. Dave must include all of the dividend in his gross income. c. Bob must report $750 of dividend income, and Dave must report $250 of dividend income. Bob must report $250 of dividend income, and Dave must report $750 of dividend income. d. e. None of the above is correct

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