valued at $3,500. As the beneficiary of his father's life insurance policy. Ryan also received $165,000. h. The couple spent a weekend in Atlantic City in November and came home with gross gambling winnings of $2,700. i. Diana received $3,400 cash for reaching 10 years of continuous service at DI. j. Diana was hit and injured by a drunk driver while crossing a street at a crosswalk. she was unable to work for a month. She received $9,000 from her disability insurance. DI paid the premiums for Diana, but it reported the amount of the premiums as compensation to Diana on her year-end W-2. k. The drunk driver who hit Diana in part (j) was required to pay her $3,500 medical costs, $3,000 for the emotional trauma she suffered from the accident, and $8,000 for punitive damages. 1. For meeting her performance goals this year. Diana was informed on December 27 that she would receive a $6.500 year-end bonus. DI (located in Houston. Texas) malled Diana's bonus check from its payroll processing center (Tampa. Florida) on December 28 . Diana didn't receive the check at home until January 2. m. Ryan is a 10 percent owner of MNO Incorporated, a Subchapter S corporation. The company reported ordinary business Income for the year of $122,000. Ryan acquired the MNO stock two years ago. n. Ryan's day care business collected $110,000 in revenues. In addition, customers owed him $10,500 at year-end. During the year, Ryan spent $13,000 for supplles, $9.000 for utlities, $30.000 for rent and $1,250 for miscellaneous expenses. One customer gave him use of thelr vacation home for a week (worth $10,000 ) in exchange for Ryan allowing their child to attend the doy care center free of charge. Ryan accounts for his business activities using the cosh method of accounting. o. Diano's employer pays the couple's annual heolth insurance premlums of $13.000 for a qualified plan. valued at $3,500. As the beneficiary of his father's life insurance policy. Ryan also received $165,000. h. The couple spent a weekend in Atlantic City in November and came home with gross gambling winnings of $2,700. i. Diana received $3,400 cash for reaching 10 years of continuous service at DI. j. Diana was hit and injured by a drunk driver while crossing a street at a crosswalk. she was unable to work for a month. She received $9,000 from her disability insurance. DI paid the premiums for Diana, but it reported the amount of the premiums as compensation to Diana on her year-end W-2. k. The drunk driver who hit Diana in part (j) was required to pay her $3,500 medical costs, $3,000 for the emotional trauma she suffered from the accident, and $8,000 for punitive damages. 1. For meeting her performance goals this year. Diana was informed on December 27 that she would receive a $6.500 year-end bonus. DI (located in Houston. Texas) malled Diana's bonus check from its payroll processing center (Tampa. Florida) on December 28 . Diana didn't receive the check at home until January 2. m. Ryan is a 10 percent owner of MNO Incorporated, a Subchapter S corporation. The company reported ordinary business Income for the year of $122,000. Ryan acquired the MNO stock two years ago. n. Ryan's day care business collected $110,000 in revenues. In addition, customers owed him $10,500 at year-end. During the year, Ryan spent $13,000 for supplles, $9.000 for utlities, $30.000 for rent and $1,250 for miscellaneous expenses. One customer gave him use of thelr vacation home for a week (worth $10,000 ) in exchange for Ryan allowing their child to attend the doy care center free of charge. Ryan accounts for his business activities using the cosh method of accounting. o. Diano's employer pays the couple's annual heolth insurance premlums of $13.000 for a qualified plan
