MULTIPLE CHOICE PROBLEMS ale of multiple choice problems is provided below. Additional multiple choice problem i lable at money-education.com by decenning the Student Practice Parte a 1. Gibbs has an ad bhs has an account at First Maryland Bank. $10,000 of his account balance is invested in a ificate of deposit (CD). When must interest paid on the CD be included in Jonas income? a. Interest on a CD is never included in income. The interest is included in Gibbs' income when it is added to his account balance c. The interest is included in Gibbs' income when he withdraws it from the account d. The interest is included in Gibbs' income when he spends it. Patrick owns 100 shares of Darling Company stock. On December 29, 2018, Darling Company prepared the dividend checks for its shareholders. On December 31, 2018, Darling Company mailed dividend checks to all of its shareholders. Patrick did not receive his dividend check until January 3, 2019. On what date must Patrick include the dividends in his income? a Patrick is not required to include the dividends in his income. b. Patrick must include the dividends in his income on December 29, 2018. c. Patrick must include the dividends in his income on December 31, 2018. d Patrick must include the dividends in his income on January 3, 2019. 3. George is awarded $55,000 in compensatory damages for harm to his reputation and $30,000 in compensatory damages for bodily injury. In addition, George is awarded $275.000 in punitive damages. How much of these awards must George recognize in taxable income! a. $85,000. b. $275,000 c. $330,000. d. $360,000. 4. Brian had the following items of income this year. Salary - $22,000 Child support received - $6,000 Alimony received - $10,000 (2006 divorce decree) Personal injury award from an auto accident. He lost the use of his left hand and was awarded compensatory damages of $200,000. He also received $50,000 in punitive damages. Calculate Brian's gross income for the current year. a. $32,000. b. $38,000. c. $82,000. d. $288,000. MULTIPLE CHOICE PROBLEMS 159