ame: ID: C 8. Select the choice which identifies the correct answer 3. An accrual basis taxpayer recognizes income when it is received b. A cash basis taxpayer recognizes income when it is camned c. Under the cash method of accounting, income is earned when (I) all of the events have occurred that fix the right to receive such income and (2) the amount to be received can be determined with reasonable accuracy. d. The constructive receipt doctrine prevents the cash basis taxpayers from deferring recognition of income by intentionally avoiding the receipt of the income in the current tax year e. None of the above. 9. Ron, age 19, is a full-time student at City University. During 2019, he received the following payments 5 6.000 1600 State scholarship - tuition State scholarship-room and board Loan from college financial aid office Ron was walking to class and hit by a drunk driver. He broke his leg and received $50,000 for his injury. Ron also received $10,000 for punitive damages 2000 50,000 10,000 What is Ron's adjusted gross income for 20197 a $13,000 b. 521.000. c. $61.000. d. $71.000 None of the above 10. In 2019. Asia had the following transactions: $90,000 4.000 (5.000) (6000) (5.000) Salary Asia embezzled (stole) money from her employer Traditional IRA contribution made Student loan interest paid Charitable contributions Asia's AGT is: $78,000 b. 583.000. $94.000 d $104,000 $110,000