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Required information [ The following information applies to the questions displayed below. ] Consider the following letter and answer Shady's question. To my friendly student
Required information
The following information applies to the questions displayed below.
Consider the following letter and answer Shady's question.
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. It's been a busy year and lm a busy man, so let me give you the lowdown on my life and you can do your
thing.
I was unemployed at the beginning of the year and got $ in unemployment compensation. I later got a job as a
manager for Roca Cola. I earned $ in base salary this year. My boss gave me a $ Christmas bonus check on
December 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 $ a year
and all the Roca Cola I can drink, although I can't really drink a whole lotl figure $ 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 $ and
Im 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 $ lying in the street! Well, one person's
bad luck is my good luck, right?
I like to gamble a lot. I won a $ poker tournament in Las Vegas this year. I also won about $ over the year
playing the guys at our Friday night poker game. Can you believe that I didn't lose anything this year?
Speaking of the guys, one of them hit me with his car as we were leaving the game one night. He must have been pretty
ticked that he lost! I broke my right leg and my left arm. I sued the guy and got $ for my medical expenses and
$ to pay my psychotherapist for the emotional problems I had relating to the injuries I got really depressed! and I
won $ in punitive damages. That'll teach him that he's not so tough without his car!
Another bit of bad luck. My uncle Monty died this year. I really liked the guy, but the $ inheritance I received from
him made me feel a little better about the loss. I did the smart thing with the money and invested it in stocks and bonds
and socked a little into my savings account. As a result, I received $ in dividends from the stock, $ in interest from
the municipal bonds, and $ in interest from my savings account.
My exwife, Alice, is still paying me alimony. She's a lawyer who divorced me in because I was "unethical" or
something like that. Because she was making so much money and I was unemployed at the time, the judge ruled that she
had to pay ME alimony. Isn't that something? She sent me $ in alimony payments this year. She still kind of likes me
though. She sent me a check for $ as a Christmas gift this year. I didn't get her anything, though.
So there you go That's this year in a nutshell. Can you figure out my gross income and complete page of Form
through line b and Schedule for me And because you're a student, this is free, right? Thanks, I owe you one! Let me
know if I can get you a sixpack of Roca Cola or something.
a Calculate the gross income. a Calculate the gross income.
Answer is complete and correct.
Could you please tell me where the amounts with green checkmarks belong on the page and schedule
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