Hazel, a solvent individual, owed $25,000 to her employer. The employer forgave the employee for her indebtedness. Hazel also borrowed $50,000 from her father to buy a house in 2013. In 2016 her father informed her that he forgives the loan completely. Hazel' s gross income from the above is: $0. $75,000. $25,000. $50,000. None of the above. In November 2015, Eva, a cash basis CPA, contracted to perform an audit during the month of December 2015. At the time the contract was negotiated, the client offered to pay for the services in December 2015. However, Eva wanted to defer the income until 2016. Therefore, the final agreement had a written provision for a $1, 500 payment in January 2016. Eva also prepared a corporate return in November 2016. When she completed the return on December 1, 2016, the client paid the $150 charge but Eva did not cash the check until Jan. 5, 2017. What amount must Eva report on her 2016 tax return? $0. $150. $1, 500 $1, 650 none of the above Which of the following is deductible to arrive at adjusted gross Income? Dues paid to the AICPA by an employee of an accounting firm Hobby losses 50% of the medical premiums paid by a self-employed individual 50% of self employment taxes choices "c" and "d". Drew Akron took out a student loan to attend Queens College. In 2016 he paid interest on the student loan of $3,000. He is currently single and has AGI of $35,000. His deductible interest, rounded off to the nearest dollar, is (phaseout is $65,000 - $80,000) $3,000 $2, 500 $833 $1, 667 none of the above