Question 1;

During the current tax year Erin received the following amounts:

• Salary and wages income of $98,000.
• $4,400 interest from a bank term deposit of $50,000.
• $500 per week for 50 weeks of the year from a rental property she owns.
• Winnings of $10,000 on the poker machines.
• $500 from selling eggs that her chickens laid to friends.
• A holiday bonus of $1,000 from her employer.
• A watch worth $400 from a happy client.

Question 2

Discuss the importance of the distinction between receipts that are capital in nature from those that are income in nature.

Question 3

Respond;

1. __________________ An act of omission or intention that violates criminal case or statutory law and is punishable by law.
2. __________________ Law that originates with the legislature in a written enactment.
3. __________________ Law that defines crimes and their punishments.
4. __________________ The attorney for the defendant in a legal proceeding.
5. __________________ A punishment philosophy that assumes that behavior may be controlled and criminal behavior prevented by the threat of punishment.
6. __________________ Rules and regulations made through proper procedures by agencies to which power has been delegated by a state legislature or, in the federal system, by the U.S. Congress.
7. __________________ Decisions based on one's judgment rather than legal rules. In criminal justice systems it can result in inconsistency but also in actions suitable for individual circumstances.
8. __________________ System that characterizes the U.S. court systems, consisting of a federal system and 50 state systems, which pass and enforce their own laws, along with municipal systems that make and enforce their own ordinances.
9. __________________ Constitutional principle that a person's life, liberty, or property cannot be deprived without lawful procedures.
10. __________________ The constitutional principle guaranteeing that the U.S. legal system shall not deny to any person or class of persons the same treatment as other persons or classes of persons in the same or similar situations. Of particular significance are the circumstances of race, ethnicity, religion, and gender.