Dave Dobes

is a sole proprietor running an advertising agency with two employees, Cindy and Carol. Dave decides to relocate his business from New Wilmington to Ellwood City, and Cindy and Carol agree to relocate as well. All three decide to move their families to Ellwood City. Dave agreed to reimburse Cindy and Carol for their moving expenses.

(a) Carol's old residence was 13 miles from the old job location, and the new job location is 61 miles from her old residence. Once in Ellwood City, Carol works full-time for the next 2 years. What are the federal income tax consequences for Carol and Dave regarding the reimbursement of Carol's moving expenses?

(b) Cindy's old residence was 8 miles from the old job location, and the new job location is 60 miles from her old residence. Once in Ellwood City, Cindy works full-time for the first 52 weeks, but she works only part-time after that. What are the federal income tax consequences for Cindy and Dave regarding the reimbursement of Cindy's moving expenses?

(c) Dave's old residence was 10 miles from the old job location, and the new job location is 75 miles from his old residence. Once in Ellwood City, Dave works full-time for the next 52 weeks; however, he only works full-time 20 of the following 52 weeks. What are the federal income tax consequences to Dave regarding his qualified moving expenses?