Question 15

This year Ed celebrated his 25th year as an employee of Designer Jeans Company. In recognition of his long and loyal service, the company awarded Ed a -gold watch worth $400 and a $2,600 cash bonus.

What amount must Ed include in his gross income?

Question 17

Edgar, an employee of Sam Corp. Edgar Dies suddenly. Sam Corp. pays his widow, Ann $4,000 in accrued wages, and $4,500 in light of the family's financial needs.

What amount if any, can be included in gross income?