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Alex and Myra Burg, married and filing joint income tax returns, derive their en re income from the opera on of their retail candy shop.

Alex and Myra Burg, married and filing joint income tax returns, derive their en re income from the opera on of their retail candy shop. The Burg's received the following in 2020.

Net income from retail candy shop $50,000 Interest on: Refund from amended tax return 175 Savings account and certificates of deposit 425 Municipal bonds 90 Gift 4,000 Jury duty pay 250 Gambling Winnings 500 Life insurance proceeds (Paid on account of Mrs. Burg's father's death) 10,000

The Burg's itemized their deductions on Schedule A. The following unreimbursed cash expenditures were among those made by the Burgs for the 2020 tax year:

State income tax $1,200 Repair of glass vase accidentally broken by the dog (Vase cost $500 and had FMV of $600 before the accident and $200 after the accident) 90 Fee for breaking a lease on prior apartment residence located 20 miles from new residence 500 Repair and maintenance of motorized wheelchair for physically handicapped dependent child 300 Four tickets to a theater party sponsored by a qualified charitable organization; not considered a business expense (Similar tickets would cost $25 each at the box office) 160 Security deposit placed on an apartment at a new location 900

For items 1 through 5, determine the taxable amount, if any, that should be included in Adjusted Gross Income (AGI) on the Burg's 2020federal income tax return.

1. Interest income - _______ 2. Gift - _______ 3. Life insurance proceeds - _______ 4. Jury duty pay - _______ 5. Gambling Winnings - _______

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