Alexander made his annual gambling trip to Ceasar's Palace in Las Vegas. On this trip Alexander won $350 at the roulette table and $2,000 at the craps table. Also this year, Alexander made several trips to the racetrack, but he lost $700 on his various wagers. What amount must Alexander include in his gross income?

1. $2350

2. $1650

3. $350

4. $2000

Billy works for Harley Davidson. In June he was injured while assembling a motorcycle. He received $25,000 of worker's compensation payments, in addition to $130,000 salary in the current year. What is Billy's gross income in the current year?

1. $145,000

2. $130,000

3. $25,000

4. $0

Carol, whose husband died in 2020, filed a married filing jointly tax return for 2020. She did not remarry and continues to maintain her home with her 3 dependent children. In the preparation of her 2021 tax return, Carol should file as:

1. Single

2. Head of Household

3. Married filling jointly

4. Qualifying widow(er)

Charles and Camilla got divorced in 2018. Under the terms of the decree Charles pays Camilla $85,000 in cash in each of the next five years (or until Camilla's death or remarriage). In addition, Charles will transfer a castle worth $2,000,000 to Camilla and pay $12,000 per year to support their son, Clyde, until he turns 19 years old. What amount (if any) is included in Camilla's gross income in 2021?

1. $12,000

2. $2,097,000

3. $85,000

4. $0