1. Please help for understanding.
2. #1
3. Tedwonacarworth$20,000onThePriceisRightonSeptember30,2016.Heplanstosellthecarnextyear.HowmuchgrossincomedoesTedrecognizein2016?

#2

1. OnJanuary13,2016,Jason,acashbasistaxpayer,wasoneof3winnersofa$1.6billionPowerballjackpot.Jasonhadtheoptiontoreceiveaone-timecashpaymentof$327.8millionor30annualpaymentsof$17.8million.Jasonelectedtoreceive30annualpaymentsandreceivedthefirstpaymentof$17.8milliononJuly1,2016.HowmuchgrossincomedoesJasonhavein2016asaresultofthePowerballwinnings?

#3

1. On July 1, 2016, Stephanies grandmother gave her 1000 shares of Starbucks stock worth $60,000 as a graduation present. Starbucks declared a dividend of 20 cents per share on September 9, 2016, to be paid on November 27, 2016 to shareholders of record as of November 12, 2106. Stephanie still owned all of the stock on December 31, 2016. How much gross income does Stephanie have as a result of the gift and the dividend in 2016?