During the current year, a taxpayer collected:

$600 interest on U.S. Treasury bills

$900 interest on Escambia County school bonds

$200 from a state income tax refund (she itemized her deductions last year).

She also received $400 in dividends from a U.S. common stock. Her gross income from the above is:

$400

$1,000

$1,200

$2,100

In October of 2017 Bruce, a cash basis CPA, contracted to perform an audit for $2,000 and to prepare the corporate tax return for $1,000. The contract called for payment January 31 of 2018. The client offered Bruce $1,500 on December 31, 2017. Bruce refused citing the contract payment date. What amount must Bruce include in his 2017 tax return?

$0

$1,000

$1,500

$3,000

Cranky, age 70, is single and an employee of Unknown Corporation. Her only sources of income this year are $80,000 of W-2 wages, $5,100 in alimony payments, and a $1,000 cash gift from her brother. Based on the above, Crankys adjusted gross income for the current year is:

$80,000

$81,000

$83,000

$85,100

Lane is single and has two dependents. Financial records show the following items in the current year:

Gift from a friend $12,000 Dividends received on stock $1,200 Prize won in state lottery $1,000 Salary from employer $35,000 Child support received from ex-spouse $6,000 Alimony received from ex-spouse $12,000 Long-term capital loss $5,000

How much is Lane adjusted gross income for the current year?

$43,200

$44,200

$46,200

$48,200 Based on USA taxation