Question
During the current year, Hal sustained a serious injury in the course of his employment. As a result of this injury, Hal received the following
During the current year, Hal sustained a serious injury in the course of his employment. As a result of this injury, Hal received the following payments during the year:
| Worker's compensation | $2,400 |
| Reimbursement from employer's health insurance plan for medical expenses paid by Hal and not deducted by him | 1,800 |
| Damages for personal injuries | 8,000 |
The amount to be included in Hal's gross income for the current year should be:
| a. | $12,200 | |
| b. | $8,000 | |
| c. | $1,800 | |
| d. | $0 |
QUESTION
Gladys invests in bonds. In the current year, she received the following interest income:
| California general revenue bonds | $ 800 |
| New York City sanitation fund bonds | 1,000 |
| Seattle School District bonds | 400 |
| AT&T 20-year bonds | 600 |
How much interest income may Gladys exclude from gross income?
| a. | $0 | |
| b. | $800 | |
| c. | $1,800 | |
| d. | $2,200 | |
| e. | $2,800 |
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Auditing Investments
Authors: Barbara Davison
1st Edition
0894134272, 978-0894134272
