QUESTION 21

In 2020, Mary's employer paid health insurance premiums for her under an employer-provided health insurance policy totaling $10,000. During 2020, Mary was physically injured in an automobile accident and was awarded the following amounts as a result of her injury:

$10,000 for medical expenses

$5,000 for pain and suffering for her injury

$15,000 for punitive damages

$3,000 for emotional distress

$20,000 disability pay under a disability policy purchased by Mary

What amount is taxable to Mary?

	a.	$23,000
	b.	$38,000
	c.	$18,000
	d.	$63,000

1 points

QUESTION 22

Bob was injured in an automobile accident and received $25,000 for his physical injury, $50,000 for his loss of income, and $10,000 punitive damages. As a result of the award, the amount Bob must include in gross income is:

	a.	$85,000
	b.	$60,000
	c.	$50,000
	d.	$10,000

1 points

QUESTION 23

Mary has five years of service completed as of February 15, 2019, her employment anniversary date. If the defined benefit plan uses the cliff vesting schedule, determine Marys nonforfeitable percentage.

	a.	80%
	b.	60%
	c.	0%
	d.	100%

1 points

QUESTION 24

With respect to a loss on the sale of small business (Section 1244) stock by the original owner of the stock whose filing status is single, which of the following is true?

	a.	it will all be treated as a short-term capital loss
	b.	it will be treated as a capital loss to the extent of $100,000 and the balance will be treated as an ordinary loss
	c.	it will be treated as an ordinary loss only to the extent of $50,000 and the balance will be treated as a capital loss
	d.	it will all be treated as an ordinary loss

1 points

QUESTION 25

A single taxpayer pays $1,500 of state income taxes in 2022. He files his 2022 tax return and claims total itemized deductions (including his state income taxes) in the amount of $16,500. In 2023, he receives a state income tax refund of $900. How much, if any, of the $900 refund must he include in gross income on his 2023 return?

	a.	$1,500
	b.	$900
	c.	$0
	d.	$500