PI:3-41 (similar to) Question Help Skip rented an office building to Collin for $4,000 per month. On December 29, 2018, Skip received a deposit of $6,000 in addition to the first and last monthieront Occupancy began on January 2, 2020. On July 15, 2020, Collin closed his business and filed for bankruptcy. Skip had collected rent for February March, and April on the first of each month. Skip had received May rent on May 10, but collected no payments afterwards. Skip withhold 9900 from the deposit because of damage to the property and $2,000 for unpaid rent. He refunded the balance of the deposit to Collin. Requirement What amount would Skip report as gross income for 2019? for 2020? Begin by selecting the labels to show the items that will comprise Skip's 2019 gross income, and then enter the amounts to compute the 2019 gross income amount.( an input field is not used, leave the input field(s) empty, do not select a label or enter a zero.) Taxable item 2019 Gross income Total gross income Hilary inherited $20,000 of City of Detroit bonds in February. In March, she received interest of $600, and in April she sold the bonds at a $250 gain. Hilary redeemed Series EE U.S. savings bonds that she had purchased several years ago. The accumulated interest totaled 51,600. Hilary received $700 of interont on bonds issued by the City of Toronto, Canada. (The proceeds of the bonds were not used to pay college expenses.) Requirement What amount, if any, of gross income must Hilary report? (W an input field is not used, leave the input field() ernpty, do not select a label or enter a zero) Source of income Income Total gross income Troy retired during the current year at age 56. He purchased an annuity from American National Life Company for $20,000. The annuity pays Troy $250 per month for life (Click the icon to view the Expected Retum Multiple table) Requirements a. Compute Troy's annual exclusion b. How much income will Troy report each year after reaching age 84? Requirement a. Compute Troy's annual exclusion Begin by computing the exclusion ratio (Enter the answer as a decimal rounded to four decimal places, Xxxx.) Exclusion ratio Annual amount received Exclusion ratio Blake retiree when she turns 72. She begins receiving a monthly pension of $380 from her employer'e qualified retirement plan. While employed, Blake contributed $17.280 to the plan (Click the icon to view the anticipated number of payments based on age at retirement) Read the requirements Requirement a Blake uses the simplified method to compute her exclusion. Why? The simplified method is used because the annuity is related to her employment Requirement b. Compute her monthly exclusion Select the labels and then enter the amounts to calculate the monthly exclusion - Monthly exclusion Lacey is a 69-year-old single individual who receives a taxable pension of S10,500 per year and Social Security benefits of $3,300. Lacey is considering the possibility of selling stock she has owned for yoors and using the funds to purchase a summer home. She will realize a gain of $22,150 when she sells the stock, which has been paying $700 of dividends each year. Lacny says her brother recommended that she sell half of the stock this year and half next year because selling all of the stock at once would affect the tax treatment of her Social Security benefits. Read the requirements Requirement a. Compute her AG under the assumption she sells all of the stock now after receiving $700 dividends from the stock. Begin by computing the provisional income. Only selections that are applicable to Lacey. (If an input field is not uned in the table, leave the input field empty, do not select a label or enter a zero.) Plus: Provisional income Review the following independent scenarios (Click the icon to view the information.) Requirement What amount, if any, must be included in gross income by the taxpayers? a. Ann received $2,000 from her insurance company when her automobile which cost $3,000 was stolen. O A. None. The amount received is a recovery of capital OB. The amount received from her insurance company, $2,000, should be included in Ann's gross income. OC. None. The amount is not deductible by the insurance company, thus, should not be included in Ann's gross income. OD. Only half of the amount received from the insurance company should be included in Ann's gross income Bob and Karissa, who are in the 37% tax bracket, are interested in reducing their taxes. They are currently considering several alternatives. (Click the icon to view alternatives.) Requirement For each alternative, indicate how much tox. If any, they would save. (Round your answers to the nearest whole dollar.) a. Make a gift of bonds valued at $6,000 that yield $480 per year interest to their 24-year-old daughter, who has no other income Per year, they would save Would the daughter be subject to tax on the interest? Christine opens a retail store. Her sales during the first year are $800,000, of which $40,000 has not been collected at year-end. Her purchases are $500,000. She still owes $15,000 to her suppliers, and at year-end she has $45,000 of inventory on hand. She incurred operating expenses of $175,000. At year-end she has not paid $25,000 of the expenses. Read the requirements: Requirements a. and b. Compute her net income from the business assuming she elects the accrual method. Then compute her net income from the business assuming she elects the cash method Accrual method Sales Cost of goods sold Gross profit Operating expenses Net Income