Hermione and Han are married. Hermione has a 15-year-old daughter (Luna) from her previous marriage. Hermione works as an engineer for Ravenclaw Engineering and earns a salary of $215,000. Ron has his own real estate company. Hermione received $4,500 of interest from corporate bonds and $2,250 of interest from a municipal bond. Hermione acquired these bonds prior to her marriage to Ron. Ron's father passed away on April 14. He inherited cash of $150,000 and a stamp collection valued at $7,000. As beneficiary of his father's life insurance policy, Ron also received $350,000. The Solos also reported the following financial information pertaining to their activities during the current year.

Hermione received $5,500 in child support payments from her former husband. They were divorced in 2013.

Ron won a $4,250 cash prize at a Quidditch team raffle (to help fund Lunas team)

Hermione borrowed $32,000 from Ravenclaw to purchase a car. Ravenclaw charged her 2 percent interest ($640) on the loan, which she paid off on December 31, but they would have charged her $1640 if interest was calculated at the applicable federal interest rate.

The couple bought 900 shares of Slytherin stock for $20 per share on July 2. The stock was worth $32 a share on December 31. The stock paid a dividend of $3.00 per share on December 1.

Hermione received $1,400 cash and a mantle clock valued at $395 for reaching 10 years of continuous service at Ravenclaw. She donated the cash to the local food bank a charitable organization.

Hermione is a 40 percent owner of Griffindor Inc., a Subchapter S corporation. The company reported ordinary business income for the year of $48,000. Hermione acquired the Griffindor stock two years ago.

Ron collected $45,000 in commissions for home sales and realtor services during the year. During the year, he spent $2,500 for supplies, $6,500 for utilities, $12,000 for office rent, and $3,100 for miscellaneous expenses. One client gave him use of his vacation home for a week-end (worth $3,900) in exchange for realtor services for the year. Ron accounts for his business activities using the cash method of accounting.

For meeting her performance goals this year, Hermione was informed on December 23 that she would receive a $10,000 year-end bonus. Ravenclaw (located in London) mailed the bonus check from its payroll processing center (France) on December 24. Hermione didnt receive the check at her home until January 2.

Gross Income

Use the table below to show what you did and did not include in their Gross Income and your explanation. Feel free to add additional rows if necessary.

Item	Amount	Explanation