Chapter 5 Comprehensive Problem 2 Robin and Joshua were married on January 1 of last year. Robin has a nine-year-old daughter, Alyssa, from her previous marriage. Joshua works as an audit manager at CwP LLC earning a salary of $126,000. Robin is self-employed and runs a food truck selling cronuts. The couple reported the following financial information pertaining to their activities during the current year. What is the couple's gross income? a. Joshua earned a $126,000 salary for the year. b. Robin received $8,500 in child support payments from her former husband. c. The couple received $300 of interest from corporate bonds and $150 of interest from a municipal bond. d. The couple bought 50 shares of ABC Inc. stock for $40 per share on July 2. The stock was worth $47 a share on December 31. The stock paid a dividend of $1.00 per share on December 1. e. Robin's father passed away on April 14. She inherited cash of $50,000 from her father and his baseball card collection, valued at $2,000. As beneficiary of her father's life insurance policy, Robin also received $150,000. f. Joshua received $600 cash from CwP as a bonus for passing the CPA exam. g. Joshua was hit and injured by a drunk driver while crossing a street at a crosswalk. He was unable to work for a month. He received $6,300 from his disability insurance. CwP paid the disability premiums for Joshua but they reported the amount of the premiums each year as compensation to him on his year-end W-2. h. The drunk driver who hit Joshua in part (j) was required to pay his $2,000 medical costs, $1,500 for the emotional trauma he suffered from the accident and $5,000 for punitive damages. i. Robin is a 10 percent owner of NPM Inc., a Subchapter S corporation. The company reported total ordinary business income for the year of $102,000. Robin acquired the stock two years ago. j. Robin's food truck business collected $35,000 in revenues. In addition, customers owed her $3,000 at year-end for catering orders delivered for December holiday parties. During the year, Robin spent $5,500 for supplies, $1,500 for utilities, $15,000 for cost of goods sold, and $500 for miscellaneous expenses. Robin accounts for her business activities using the cash method of accounting. k. Joshua's employer pays the couple's annual health insurance premiums of $7,500