Read through the following items and determine what the taxable income is. For any amount that is not taxable or tax deductible explain why it is not. Enter your answers in the shaded boxes. Examples follow: Example: Jesse earned $100 of savings account interest and $500 from child support. Example: Jesse had $100 of credit card interest and $1,000 of mortgage interest Example: Jessie had $3,000 of Schedule C business expenses and $1,500 of hobby expenses To my friendly student tax preparer: Hello, my name is Shady Slim. I understand you are going to help me figure out my gross income for the year ... whatever that means (USE 2021 RULES). It's been a busy year and I'm a busy man, so let me give you the lowdown on my life and you can do your thing. Taxable Income FOR AGI Deductions FROM AGI Deductions $ 100 (1,000) $ (3,000) Explanation for anything excluded $500 child support is excluded from income $100 credit card interest is not deductible Hobby expenses are not deductible Taxable Income (Positive numbers) numbers) FOR AGI FROM AGI Deductions Deductions (Negative (Negative numbers) Explanation for anything excluded a. b. C. d. I was unemployed at the beginning of the year and got $5,000 in unemployment compensation. I later got a job as a manager for Roca Cola. I earned $121,500 in base salary this year. My boss gave me a $2,500 Christmas bonus check on December 22. I decided to hold on to that check and not cash it until next year, so I won't have to pay taxes on it this year. Pretty smart, huh? My job's pretty cool. I get a lot of fringe benefits like a membership to the gym that costs $1,950 a year and all the Roca Cola I can drink, although I can't really drink a whole lot-I figure $40 worth this year. As part of my manager duties, I get to decide on certain things like contracts for the company. My good buddy, Eddie, runs a bottling company. I made sure that he won the bottling contract for Roca Cola for this year (even though his contract wasn't quite the best). Eddie bought me a Corvette this year for being such a good friend. The Corvette cost $65,000, and I'm sure he bought it for me out of the goodness of his heart. What a great guy! Here's a bit of good luck for the year. Upon leaving my office one day, I found $1,000 lying in the street! Well, one person's bad luck is my good luck, right? I like to gamble a lot. I won a $22,500 poker tournament in Las Vegas this year. I also won about $7,500 over the year playing the guys at our Friday night poker game. numbers) numbers) numbers)