Problem 4-28 (LO. 1)

Determine the taxpayer's current-year (1) economic income and (2) gross income for tax purposes from the following events:

If an amount is zero, enter "0".

		Economic Income	Gross Income for Tax Purposes
a.	Sam's employment contract as chief executive of a large corporation was terminated, and he was paid $500,000 not to work for a competitor of the corporation for five years.	$	$
b.	Elliot, a 6-year-old child, was paid $5,000 for appearing in a television commercial. His parents put the funds in a savings account for the child's education.	$	$
c.	Valery found a suitcase that contained $100,000. She could not determine who the owner was.	$	$
d.	Winn purchased a lottery ticket for $5 and won $750,000.	$	$
e.	Larry spent $1,000 to raise vegetables that he and his family consumed. The cost of the vegetables in a store would have been $2,400.	$	$
f.	Dawn purchased an automobile for $1,500 that was worth $3,500. The seller was in desperate need of cash.	$	$