I need help with these problems. Can you all answer these questions with explnations?

I need help with these questions. Can you all answer these questions with explanations?

QUESTION 14 Du ring 2018, Marcus had the following transactions: Salary $72,000 Interest income on GM bonds 3,500 Inheritance from uncle 40,000 Contribution to traditional IRA 6,500 Capital losses 3,500 Marcus's AGI is: O a. $62,000. O b. $64,000. O c. $67,000 O d. $102,000. QUESTION 15 During 2020, Jacques had the following transactions: Salary $50,000 20,000 Bank loan (proceeds used to buy personal auto) Alimony paid (divorce was finalized in 2019). 12,000 Child support paid 8,000 6,000 Company bonus Jacques' AGI is: O a. $32,000. O b. $38,000. O c. $44,000. O d. $56,000 During 2020, Susan had the following transactions: Salary S 80,000 2,000 121,000 Capital loss on Chevron stock Damages for personal injury (car accident) Punitive damages (st car accident) Cash dividends from GM Corporation stock 200,000 7,000 Susan's AG is: O a $285,000. b. $287,000. c. $187.000. Od. $387,000 QUESTION 17 Father made an interest-free loan of $35,000 to Son who used the money to buy a car. Son had $1,800 interest income from a certificate of deposit for the year, Father is required to impute interest income of $1,800. True False QUESTION 18 3P Vince sold his personal use automobile for a loss of $10,000. He also sold a personal coin collection for a gain of $11,000. As a result of these sales, S1,000 is subject to income tax True False QUESTION 19 Gold Company was experiencing financial difficulties but was not bankrupt or insolvent. National Bank, which held a mortgage on other real estate owned by Gold, reduced the principal from $110,000 to $85,000. The bank had made the loan to Gold when it purchased the real estate from Silver, Inc. Pink, Inc., the holder of a mortgage on Gold's building, agreed to accept $40,000 in full payment of the $55,000 due. Pink had sold the building to Gold for $150,000 that was to be paid in installments over eight years. As a result of the above, Gold must: a. Include $40,000 in gross income. b. Reduce the basis in its assets by $40,000. c. Include $25,0C in gros income and reduce its basis in its assets by $15,000. d. Include $15,000 in gross income and reduce its basis in the building by $25,000 QUESTION 20 Jane, whose husband died in November 2019, maintains a household in which her dependent child lives. Which (if any) of the following is her filing status for the tax year 2020? (Note: Jane is the executor of her husband's estate.) a. Single b. Married, filing separately O c. Surviving spouse Od. Head of household QUESTION 21 If a tax deficiency is attributable to fraud, the negligence penalty will be imposed True False QUESTION 22 In 2020, Ed is 66 and single. If he has itemized deductions of S12,700, he should not claim the standard deduction alternative. True False QUESTION 7 Melka purchased an annuity for $24,000 in 2020. Under the contract, she will receive $300 each month for the rest of her life. According to the actuarial estimates, Melka will live to receive 96 payments and will receive a 3% return on her original investment. a. If Melka collects $3,000 in 2020, her gross income is 5630 (0.03 * $21,000). b. Melka has no gross income until she has collected $12,000. c. If Melka lives to collect more than 96 payments, all of the amounts collected after the 96th payment must be included in taxable income. If Melka lives to collect only 60 payments before her death, she will report a S6,000 loss from the annuity ($24,000 -(60 $300) = 56,000) on her final return. Od QUESTION 8 Max is a full-time graduate student at Morehouse Medical University. He serves as a teaching assistant for which he is paid $1.600 per month for eight months and his $6,000 tuition is waived. The university waives tuition for all of its employees. In addition, Max receives a $2,500 research grant to pursue his own research and studies. Max's gross income from the above is: a. So b. 56,300. C. $15,300 O d. $12,800. QUESTION 9 Sean was diagnosed with a terminal illness. His doctor estimated that Sean would live no more than 20 months. After he received the doctor's diagnosis, Sean cashed in his life insurance policy and used the money to take a trip to see friends before he died. Sean had paid $14,000 in premiums on the policy, and he collected $40,000, the cash surrender value of the policy. Max enjoys excellent health, but he cashed in his life insurance policy to purchase a new home. Max had paid premiums of $14,000 and collected $40,000 from the insurance company. a. Neither Sean nor Max is required to recognize gross income. ob. Both Sean and Max must recognize $38,000 ($50,000 - $12,000) of gross income. c. Max must recognize $28,000 ($40,000 - $12,000) of gross income, but Sean does not recognize any gross income. d. None of the above. QUESTION 10 Cynthia sued her former employer for a leg injury she suffered at work in 2020. As a result of the injury, she was partially disabled. In 2021, she received $250,000 for her loss of future income, S255,000 in punitive damages because of the employer's disregard for worker safety, and $10,000 for medical expenses. The medical expenses were not deducted on her 2020 return. Cynthia's 2021 gross income from the above is: a. $505,000. O b. $412,000. c. $265,000 O d. $255,000 QUESTION 11 Vince's itemized deductions exceed the standard deduction allowed for the current year. Under these circumstances, Vince cannot claim the standard deduction, True False QUESTION 14 Du ring 2018, Marcus had the following transactions: Salary $72,000 Interest income on GM bonds 3,500 Inheritance from uncle 40,000 Contribution to traditional IRA 6,500 Capital losses 3,500 Marcus's AGI is: O a. $62,000. O b. $64,000. O c. $67,000 O d. $102,000. QUESTION 15 During 2020, Jacques had the following transactions: Salary $50,000 20,000 Bank loan (proceeds used to buy personal auto) Alimony paid (divorce was finalized in 2019). 12,000 Child support paid 8,000 6,000 Company bonus Jacques' AGI is: O a. $32,000. O b. $38,000. O c. $44,000. O d. $56,000 During 2020, Susan had the following transactions: Salary S 80,000 2,000 121,000 Capital loss on Chevron stock Damages for personal injury (car accident) Punitive damages (st car accident) Cash dividends from GM Corporation stock 200,000 7,000 Susan's AG is: O a $285,000. b. $287,000. c. $187.000. Od. $387,000 QUESTION 17 Father made an interest-free loan of $35,000 to Son who used the money to buy a car. Son had $1,800 interest income from a certificate of deposit for the year, Father is required to impute interest income of $1,800. True False QUESTION 18 3P Vince sold his personal use automobile for a loss of $10,000. He also sold a personal coin collection for a gain of $11,000. As a result of these sales, S1,000 is subject to income tax True False QUESTION 19 Gold Company was experiencing financial difficulties but was not bankrupt or insolvent. National Bank, which held a mortgage on other real estate owned by Gold, reduced the principal from $110,000 to $85,000. The bank had made the loan to Gold when it purchased the real estate from Silver, Inc. Pink, Inc., the holder of a mortgage on Gold's building, agreed to accept $40,000 in full payment of the $55,000 due. Pink had sold the building to Gold for $150,000 that was to be paid in installments over eight years. As a result of the above, Gold must: a. Include $40,000 in gross income. b. Reduce the basis in its assets by $40,000. c. Include $25,0C in gros income and reduce its basis in its assets by $15,000. d. Include $15,000 in gross income and reduce its basis in the building by $25,000 QUESTION 20 Jane, whose husband died in November 2019, maintains a household in which her dependent child lives. Which (if any) of the following is her filing status for the tax year 2020? (Note: Jane is the executor of her husband's estate.) a. Single b. Married, filing separately O c. Surviving spouse Od. Head of household QUESTION 21 If a tax deficiency is attributable to fraud, the negligence penalty will be imposed True False QUESTION 22 In 2020, Ed is 66 and single. If he has itemized deductions of S12,700, he should not claim the standard deduction alternative. True False QUESTION 7 Melka purchased an annuity for $24,000 in 2020. Under the contract, she will receive $300 each month for the rest of her life. According to the actuarial estimates, Melka will live to receive 96 payments and will receive a 3% return on her original investment. a. If Melka collects $3,000 in 2020, her gross income is 5630 (0.03 * $21,000). b. Melka has no gross income until she has collected $12,000. c. If Melka lives to collect more than 96 payments, all of the amounts collected after the 96th payment must be included in taxable income. If Melka lives to collect only 60 payments before her death, she will report a S6,000 loss from the annuity ($24,000 -(60 $300) = 56,000) on her final return. Od QUESTION 8 Max is a full-time graduate student at Morehouse Medical University. He serves as a teaching assistant for which he is paid $1.600 per month for eight months and his $6,000 tuition is waived. The university waives tuition for all of its employees. In addition, Max receives a $2,500 research grant to pursue his own research and studies. Max's gross income from the above is: a. So b. 56,300. C. $15,300 O d. $12,800. QUESTION 9 Sean was diagnosed with a terminal illness. His doctor estimated that Sean would live no more than 20 months. After he received the doctor's diagnosis, Sean cashed in his life insurance policy and used the money to take a trip to see friends before he died. Sean had paid $14,000 in premiums on the policy, and he collected $40,000, the cash surrender value of the policy. Max enjoys excellent health, but he cashed in his life insurance policy to purchase a new home. Max had paid premiums of $14,000 and collected $40,000 from the insurance company. a. Neither Sean nor Max is required to recognize gross income. ob. Both Sean and Max must recognize $38,000 ($50,000 - $12,000) of gross income. c. Max must recognize $28,000 ($40,000 - $12,000) of gross income, but Sean does not recognize any gross income. d. None of the above. QUESTION 10 Cynthia sued her former employer for a leg injury she suffered at work in 2020. As a result of the injury, she was partially disabled. In 2021, she received $250,000 for her loss of future income, S255,000 in punitive damages because of the employer's disregard for worker safety, and $10,000 for medical expenses. The medical expenses were not deducted on her 2020 return. Cynthia's 2021 gross income from the above is: a. $505,000. O b. $412,000. c. $265,000 O d. $255,000 QUESTION 11 Vince's itemized deductions exceed the standard deduction allowed for the current year. Under these circumstances, Vince cannot claim the standard deduction, True False