Diana and Ryan Workman were married on January 1 of last year. Ryan has an eight-year-old...

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Diana and Ryan Workman were married on January 1 of last year. Ryan has an eight-year-old son, Jorge, from his previous marriage. Diana works as a computer programmer at Datafile Incorporated (DI) earning a salary of $96,000. Ryan is self- employed and runs a day care center. The Workmans reported the following financial information pertaining to their activities during the current year. a. Diana earned a $96,000 salary for the year. b. Diana borrowed $12,000 from DI to purchase a car. DI charged her 2 percent interest ($240) on the loan, which Diana paid on December 31. DI would have charged Diana $720 if interest had been calculated at the applicable federal interest rate. Assume that tax avoidance was not a motive for the loan. c. Ryan received $2,000 in alimony and $4,500 in child support payments from his former spouse. They divorced in 2016. d. Ryan won a $900 cash prize at his church-sponsored Bingo game. e. The Workmans received $500 of interest from corporate bonds and $250 of interest from a municipal bond. Ryan owned these bonds before he married Diana. f. The couple bought 50 shares of ABC Incorporated 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. g. Ryan's father passed away on April 14. He inherited cash of $50,000 from his father and his baseball card collection, valued at $2,000. As the beneficiary of his father's life insurance policy, Ryan also received $150,000. h. The couple spent a weekend in Atlantic City in November and came home with gross gambling winnings of $1,200. Diana and Ryan Workman were married on January 1 of last year. Ryan has an eight-year-old son, Jorge, from his previous marriage. Diana works as a computer programmer at Datafile Incorporated (DI) earning a salary of $96,000. Ryan is self- employed and runs a day care center. The Workmans reported the following financial information pertaining to their activities during the current year. a. Diana earned a $96,000 salary for the year. b. Diana borrowed $12,000 from DI to purchase a car. DI charged her 2 percent interest ($240) on the loan, which Diana paid on December 31. DI would have charged Diana $720 if interest had been calculated at the applicable federal interest rate. Assume that tax avoidance was not a motive for the loan. c. Ryan received $2,000 in alimony and $4,500 in child support payments from his former spouse. They divorced in 2016. d. Ryan won a $900 cash prize at his church-sponsored Bingo game. e. The Workmans received $500 of interest from corporate bonds and $250 of interest from a municipal bond. Ryan owned these bonds before he married Diana. f. The couple bought 50 shares of ABC Incorporated 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. g. Ryan's father passed away on April 14. He inherited cash of $50,000 from his father and his baseball card collection, valued at $2,000. As the beneficiary of his father's life insurance policy, Ryan also received $150,000. h. The couple spent a weekend in Atlantic City in November and came home with gross gambling winnings of $1,200.