Federal Income Tax

Grady is a member of a large family and recelved the following payments this year. For each payment, determine whether the payment constitutes realized income and determine the amount of each payment Grady must include in his gross income. Note: Leave no answer blank. Enter zero if applicable. Required: a. A gift of $20,000 from Grady's grandfather. b. One thousand shares of GM stock worth $120 per share inherited from Grady's uncle. The uncle purchased the shares for $25 each, and the shares are worth $125 per share at year-end. c-1. A gift of $59,000 of Ford Motor Bonds. c-2. Grady recelved the bonds on October 31 , and he recelved $1,500 of semiannual interest from the bonds on December 31 . d. A loan of $5,000 for school expenses from Grady's aunt