*All questions are necessary to answer or thumbs down. If you answer all correctly, I will thumbs up.

1. Although Hank is retired, he is an excellent handyman and often works part-time on small projects for neighbors and friends. Last week his neighbor, Mike, offered to pay Hank $500 for minor repairs to his house. Hank completed the repairs in December of this year. Hank uses the cash method of accounting and is a calendar-year taxpayer. Mike gave Hank tickets in December to the big game in January. The tickets have a face value of $50 but Hank could sell them for $425. Hank went to the game with his son. What is Hanks gross income for this year?

2. Louis files as a single taxpayer. In April of this year he received a $900 refund of state income taxes that he paid last year. Last year Louis claimed itemized deductions of $12,400. Louiss itemized deductions included state income taxes paid of $1,750. How much of the refund, if any, must Louis include in gross income? Assume the standard deduction last year was $12,200.

3. Anne purchased an annuity from an insurance company that promised to pay her $20,000 per year for the next ten years. Anne paid $155,000 for the annuity, and in exchange she will receive $200,000 over the term of the annuity. How much of the first $20,000 payment should Anne include in gross income?

4. Larry purchased an annuity from an insurance company that promises to pay him $1,500 per month for the rest of his life. Larry paid $168,192 for the annuity. Larry is in good health, and he is 72 years old. Larry received the first annuity payment of $1,500 this month. Use the expected number of payments in Exhibit 5-1 for this problem. How much of the first payment should Larry include in gross income?

5. Lanny and Shirley are divorced in 2018 and do not live together. Shirley has custody of their child, Art, and Lanny pays Shirley $22,000 per year. All property was divided equally. How much should Shirley include in income if Lannys payments drop to $16,000 once Art reaches the age of 18?

6. Grady received $9,200 of Social Security benefits this year. Grady also reported salary and interest income this year. Grady files married joint and reports salary of $75,000 and interest income of $500. What amount of the benefits must Grady include in his gross income?

*Answer all questions please