d. Daniel must e. None of the above 12. IRC Section 61(A) defines " recognize $300 interest income for 2016 and a $100 loss on the sale of the bond in 2017. gross income" as: xcept as otherwise provided..., gross income means all income from whatever source derived, including (but not limited to)... Anything that increases ones wealth. ncome from whatever source derived, without apportionment A change in net worth plus consumption None of the above. b. d. e. 13. Abigail and Darcy are married. In 2017 they sold there home, which they had purchased in 2012, and lived in it since 2013. They sold the house for $865,000. They purchased the house for $270,000 and made improvements costing $45,000. Abigail and Darcy immediately purchased another home for $800,000. What is their recognized gain in 2017 from the sale of the home assuming this is the only home they ever sold? a. $50,000 b. $550,000 c. $595,000 d. $0 e. None of the above. Question 14 through 16 14. Cole owns 2,000 shares of stock in Chase Corporation, worth $75 per share. The 2,000 shares were purchased in 2011 for $48 per share. In 2017, the corporation issues a 10% stock dividend to all common shareholders with an option of receiving either the stock or the cash equivalent of $26,000. Cole selected the stock. Cole's gross income from the above is: a. $13,000 b. $26,000. c. $9,600. d. $O e. None of the above. 15. Assume the same facts as in 14 above, except that there is no option to receive cash. What amount if any of the dividend will be included in Cole's gross income? a. $26,000 b. $13,000 c. $ 9,600 e. None of the Above